DraftKings purchases Kountermove

February 11, 2016

MMA fantasy sports site Kountermove has been acquired by DraftKings according to the company in a press release issued on Thursday.  The Boston, Massachusetts company is one of the top Daily Fantasy Sports operators in the country.

Notably, the UFC has an existing sponsorship deal with DraftKings and appears in Octagon signage during UFC events.  In December 2014, it had a deal with Jon Jones to launch fantasy MMA on the DraftKings web site.

Via Draft Kings press release:

The transaction builds on DraftKings existing platform, further advancing the company’s leadership position in combat daily fantasy sports and accelerating the company’s overall growth in the combat sports space. With the transaction, DraftKings expects to further advance the level of competition currently provided by the company while accelerating its strategic objectives in growing the engagement with combat sports.

Payout Perspective:

It is an interesting move by DraftKings as it finds itself mired in legal issues across the country.  Not only does it have to deal with lawsuits and legal regulators, parts of its business are eroding due to the pressure of the present situation.  But, the strategy to acquire Kountermove may seem practical if you consider it is looking into niche parts of the fantasy sports spectrum which includes NASCAR, eSports and golf.  As noted by the Legal Sports Report, the acquisition occurs almost at the same time as DraftKings going live in the United Kingdom.  Should DraftKings be shut out of traditional sports, it may look to MMA and other niche sports to save its business model.

Got something to say?

You must be logged in to post a comment.