Reports had surfaced that daily fantasy sports site DraftKings was discussing acquiring 0 million in funding from the Walt Disney Company, but the company now says it will seek funding somewhere else.
However, DraftKings will have exclusive rights to advertise fantasy sports on Disney’s ESPN properties starting in 2016.
The reports had Disney and ESPN investing $250 million in DraftKings in a deal that would value the company at $900 million. The proposed pact would have also called for DraftKings to pay for $500 million in advertising on ESPN.
DraftKings CEO Jason Robins did not disclose terms of the advertising deal, but said it calls for a “deep integration” with ESPN.
“ESPN is the strongest brand in sports,” he said. “This is something that will definitely catapult us into the leader position.”