Shares of Score Media Rally on DraftKings Takeover Speculation

It hasn’t been not many days for Score Media & Gambling to get listed on a crucial US exchange. However, the company has found a way to be subjected to some takeover rumors that make the Canadian Company losing its shares.

Sportsbooks and media company’s shares remain higher by over six percent in terms of late trading. Depending on volume, it is more than the daily average’s quadruple. It happens just after a report stated that Score Media might respond to the deal its rival, DraftKings, is looking for.

An insider reported that some of the names that are associated with spreading those rumors are mostly media companies like The Score and Dan Le Batard and John Skipper’s fledgling Meadowlark Media venture, small sports properties like the X Games, and a poker company named Run It Once.

Though the request to respond to such rumor from Score Media hasn’t been returned yet, analyst says that a merger and opportunity acquisition can be the subject of such deal.

Scores Match DraftKings Objective

The company that runs the Score Bet mobile app makes itself a practical and considerable target for DraftKings. Because DraftKings has long been in talks to be interested in costumed itself in an authentic media outfit.

Besides, the Canadian company would also fall in the affordability of DraftKings.  The Toronto-based media company possesses a $1.17 billion market capitalization, whereas DraftKings’ market capitalization is over $22.64 billion.

Though it hasn’t been a year that it was moved from its own IPO, DraftKing now has a stainless balance sheet. However, that doesn’t also deny the fact that the company is still not profitable.

Score Can Survive on Its Own

While such rumors of acquisition are not in the meant as they swirled in the past also, it would be highly unlikely for a company like Score nearly cleaned from an IPO and move to a critical US exchange to be sold.

Besides the regions the Score is live, DraftKings also has exposure there. Then there comes the news of the nascent legalization of sports betting in Canada. If true, it will likely benefit the Core the most. In that case, the company has no reason for even considering any possibility of selling itself.

Vincenzo Davari, a writer on Sweden's best online casino, is a reporter by profession, but a learner by nature who provides informative news regarding casinos and gambling. When he gets free time, he loves to travel and explore the unknown. His diligent work helped him to get the Journalist’s Award twice.

Posted in US