Three years after purchasing Vegas Sports Information Network, Inc. (VSiN) from the Musburger family, DraftKings is selling the network back to its founders.
VSiN founders Brian Musburger and Bill Adee will lead the brand going forward, according to a press release Monday. DraftKings acquired the Las Vegas-based sports betting radio and TV network for $70 million in 2021.
Shape of VSiN deal unclear
VSiN will maintain much of its regular programming format, according to the release. However, additional details of the sell-back, most notably a price tag, are unclear. DraftKings brass likely will field questions about it during their upcoming earnings call on August 1.
A report earlier this month from Eilers & Krejcik Gaming suggested a deal between DraftKings and VSiN founders could draw from the Barstool deal Penn Entertainment executed with Dave Portnoy last summer. That saw Portnoy reclaim his company for $1 in order for Penn to move quickly on a partnership with ESPN it “had to do.”
“While a lot has changed in the sports betting industry over the past three-and-a-half years, our original vision for VSiN still holds and we are committed to delivering the most credible, independent information and analysis sports bettors can find anywhere,” Brian Musburger said in a statement. “We truly appreciate the work we’ve done with DraftKings and look forward to continuing to collaborate on future projects. Bill and I couldn’t be more excited about leading VSiN into the future and cementing our position as a trusted authority in sports betting.”
DraftKings weighs in
While DraftKings opted to announce the news through VSiN, one of its executives provided some insight into the decision.
“DraftKings continues to optimize its investments in content and media to align with the most critical areas and needs of our business strategy, objectives, and goals,” DraftKings Chief Marketing Officer Stephanie Sherman said in a statement. “We want to thank Brian, Bill, and the entire team at VSiN for a great relationship, and we look forward to continuing to advertise on the network.”
DraftKings maintains several other large-scale media investments, including DraftKings Network and a $50 million partnership with Meadowlark Media, which it executed right after the VSiN deal.
DKNG stock was up 0.16% to $36.90 a share in after-hours trading after news of the sale broke late Monday.
