Just over three years after acquiring the Vegas Sports Information Network (VSiN) from Musburger Media, DraftKings (NASDAQ: DKNG) is selling the sports betting radio network back to its original owner.
The financial terms of the transaction remain undisclosed. DraftKings had paid $70 million to purchase VSiN in March 2021. Moving forward, VSiN founders Brian Musburger and Bill Adee will once again take the reins of the sports wagering media property.
VSiN, based in Las Vegas, broadcasts from the sportsbook at the Circa Resort and Casino in downtown Las Vegas.
Announcement Arrives Soon After VSiN Sale Rumor
The official announcement of VSiN’s founders buying the media entity from DraftKings came less than three weeks after rumors about the sale began circulating.
Speculation about the sale price continues, as neither the buyer nor the seller have publicly commented on the specifics.
“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.”
Future Prospects for VSiN Post-DraftKings
It remains unclear if there will be immediate changes at VSiN following the separation from DraftKings. However, the radio network could potentially capitalize on growth opportunities more swiftly as an independent entity with the founders regaining operational control and editorial autonomy.
In the early days of the US sports wagering boom, partnerships between gaming and media companies were common, with the belief that media outlets could effectively serve as customer acquisition tools for operators.
However, some large-scale media acquisitions by gaming companies have been criticized by analysts and investors, questioning the buyers’ ability to generate profits from the acquired media entities. While DraftKings’ acquisition of VSiN wasn’t met with such criticism, the decision to sell the radio network could result in cost savings. DraftKings is set to deliver second-quarter results on Aug. 1, and it’s possible the company could elaborate on the decision to sell VSiN during its Aug. 2 conference call.
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