Disney Invests $250M Into DraftKings

Walt Disney Co. is investing $250 million into daily fantasy sports site DraftKings, according to a report from The Wall Street Journal.

The investment puts the company at a $900 million evaluation, according to sources.

Others investors in DraftKings include the Raine Group, Redpoint Ventures, GGV Capital and Atlas Venture. Disney isn’t the only massive media company to invest in a daily fantasy sports site, as Comcast has a piece of FanDuel, which currently has the most market share among daily fantasy sports sites, the report said. DraftKings and FanDuel are the two biggest players.

The DraftKings-Disney relationship will allow DraftKings to have new advertising opportunities, as the daily fantasy sports space features stiff competition for subscribers.

DraftKings is a Massachusetts-based startup.

Spending cash on fantasy sports is often considered a form of real-money online gaming. A proposed federal ban on online gaming would give a carve-out to fantasy sports.

Though it is involved with gambling on the Internet, Disney is opposed to more gambling in the state of Florida, saying that it wants to protect the family-friendly image of the state.

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