Three years after purchasing Vegas Sports Information Network (VSiN), DraftKings is considering making a major move with the multiplatform sports betting broadcast and content company.
As noted by Casino.org, consulting and research firm Eilers & Krejcik Gaming (EKG) is reporting that DraftKings is on the verge of divesting VSiN. The company’s original founder, Brent Musburger, is the most likely buyer.
DraftKings potential sale of VSiN — which it purchased for $70 million — back to Musburger has drawn natural comparisons to the deal that saw Penn Entertainment sell Barstool Sports back to founder Dave Portnoy for a transaction price of $1 last summer. Despite taking a more than $800 million loss on Barstool, selling the company back to Portnoy allowed Penn to escape its debt and enter a licensing agreement with ESPN to rebrand its Barstool Sportsbook to ESPN Bet.
While the Penn-Barstool deal is a natural comparison, it remains to be seen how much Musburger would be paying to get his company back in a potential deal. It’s also unclear whether DraftKings—which currently has a marketing deal with Barstool Sports—is eyeing a subsequent transaction or if it’s prepared to cut its losses with VSiN after three years.
“Media companies don’t necessarily make good betting companies,” EKG stated.
Originally founded by Musburger as a radio network in 2017, VSiN operates out of the Circa Sportsbook and The D Hotel in downtown Las Vegas. It streams 18 hours of daily content and operates a 24/7 channel. VSiN content can also be found on the DraftKings Network, with the Lombardi Line, hosted by former NFL executive Michael Lombardi and Stormy Buonantony, airing on the streaming channel from 2-3 p.m. ET Monday through Friday.
While DraftKings’ purchase was aimed at bolstering the company’s content offerings, VSiN’s presence at the sportsbook operator has seemingly taken a backseat to its partnership with Meadowlark Media and a variety of standalone shows like Gojo and Golic and The Ross Tucker Football Podcast. It will be worth monitoring what changes the potential divestment of VSiN could lead to, with an expanded content-based partnership with Barstool appearing to be an obvious possibility.
About Ben Axelrod
Ben Axelrod is a veteran of the sports media landscape, having most recently worked for NBC's Cleveland affiliate, WKYC. Prior to his time in Cleveland, he covered Ohio State football and the Big Ten for outlets including Cox Media Group, Bleacher Report, Scout and Rivals.