DraftKing $DKNG ESPN Deal Rumors, Dark Pool Trades

  • Post category:Dark Pool Stocks
  • Reading time:5 mins read
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DraftKings $DKNG stock rose 3.3% on October 7, 2022, when the entire market closed down. The excellent relative strength may be from rumors circulating that DraftKings will soon reveal a deal with ESPN sports.

ESPN, DraftKings close to large new partnership, Bloomberg reports

On October 6, 2022, Bloomberg reported that the new agreement would help ESPN parent Disney capitalize on the growth of sports betting.

DraftKings, ESPN near signing exclusive deal, Action Network reports

DraftKings (DKNG) and Disney’s (DIS) ESPN are near signing an exclusive partnership, Action Network’s Darren Rovell reports, citing sources. ESPN was seeking a partner in hopes of securing $3B over a period of time that would lead to a sportsbook rebranding itself with the ESPN brand, but that’s not the case with this deal, as the agreement is a massive exclusive partnership that will have shows and perhaps odds integrated into game broadcasts, Rovell says. Source: https://www.actionnetwork.com/news/draftkings-espn-partnership

Dark Pool Trades On October 5, 2022

One day before the news was made public that Disney and DraftKings were negotiating a major sports betting agreement, dark pool activity was detected in DraftKings $DKNG stock.

DKNG stock chart with dark pool trades on October 5, 2022.

Considering that there has not been any dark pool trades since October 5, 2022, it appears an institutional investor could have been front-running the ESPN and DraftKings’ negotiations news from Bloomberg and Action Network.

Make sure to review this lesson on dark pool trading so that you understand the chart above.

DraftKings stock jumps on potential deal with ESPN

DraftKings $DKNG Stock Technical Analysis

DraftKings $DKNG stock is in a technical weak uptrend. The MACD just went positive on October 7, 2022, but the money flow is still negative. $DKNG stock is trading within a downtrend channel. The stock would need to break above resistance at $19.85 for the trend to be upgraded.

DKNG stock chart with MACD going positive on October 7, 2022.
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