The Q3 2023 earnings report released today for The Walt Disney Company has revealed Disney is selling their stake in DraftKings, just one day after announcing their plans to enter the sports betting market on their own with ‘ESPN BET.’
Disney Sells Stake in DraftKings
The announcement of the sale was included in the “Other Financial Information” section under “Other Income (Expense), net” in the earnings report, stating Disney’s stake in DraftKings was sold off in the current quarter. DraftKings is an American daily fantasy sports platform and sports betting company. You can read the full statement from the report below:
In the current quarter, the Company recorded a charge of $101 million related to a legal ruling, largely offset by a $90 million gain on its investment in DraftKings, Inc. (DraftKings), which was sold in the current quarter. In the prior-year quarter, the Company recorded a $136 million DraftKings loss to adjust its investment in DraftKings to fair value.
This update comes immediately after yesterday’s reveal that ESPN would be entering the world of sports betting through a partnership with PENN Entertainment. This deal will rebrand PENN Entertainment’s existing sportsbook as “ESPN BET,” and marks a major shift in Disney’s involvement with legal sports betting. With this, ESPN BET will become the new home of ESPN’s overall sports betting content across its platforms.
What do you think of this update? Are you interested to see what Disney and ESPN do in the sports betting space? Share your thoughts with us in the comments, and check out our other stories from today’s earnings call below.
- Disney Parks & Resorts Reports 13% Increase & $8.3 Billion in Revenue for Third Quarter 2023
- Direct-to-Consumer Losses Lessen, Overall Disney+ Subscriber Count Drops While Core Members Rise 1% in Third Quarter 2023
- Losses Shrink & Savings Target of $5.5 Billion Exceeded in $22.3 Billion Third Quarter 2023 for The Walt Disney Company
- International Disney Parks Shine While Galactic Starcruiser Closure & Lower Attendance Cause Domestic Destinations to Languish
- Disney+ Joining Netflix in Crackdown on Password-Sharing
- Disney CEO Bob Iger Refuses to Speculate on Sale of Entire Company
- Disney+ & Hulu Increasing Premium Plan Cost, New Ad-Free Bundle of Both Coming to the U.S. Soon
- Disney CEO Bob Iger Says He’s ‘Personally Committed’ to Ending SAG-AFTRA & WGA Strikes
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