ESPN ‘nearing large partnership’ with DraftKings

In brief

Disney’s sports property ESPN is in talks to partner with sports betting company DraftKings, according to reports.

Activist Disney investor Daniel Loeb had previously called on the company to “spin off” ESPN to make it easier to pursue sports betting initiatives that would be difficult to reconcile with Disney’s family-friendly brand.

Loeb eventually eased pressure on the proposal after being reassured by Disney CEO Bob Chapek last month that the company “had a plan” for ESPN.

Disney’s stock fell over 2% in early trading on the news; DraftKings’ stock meanwhile rose over 4%.