Comcast Corporation (CMCSA), Yahoo! Inc. (YHOO): Can Fantasy Sports Drive Your Portfolio Higher?

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Another company I want to mention here is MGT Capital Investments, which has been monetizing assets in the online and mobile gaming space for the last few years. MGT has an EPS (ttm) of -$2.79. The negative EPS is largely due to its acquisition and selling off of its other assets.

MGT acquired a popular fantasy sports site, Fanthrowdown.com this year, and not only is it generating revenue, it also added an approximated 4 million users to its database. However, additional strength comes from its offering of daily plays and payoffs. Season-long affairs have long been dominated by juggernauts like Disney subsidiary ESPN, Yahoo! Inc. (NASDAQ:YHOO) Fantasy Sports, and CBS Sports. It will need this piece of the market to compete with Time Warner Inc (NYSE:TWX) and Comcast, as these two are expanding into daily offerings as well.

Summary

Atlas Ventures predicts that daily fantasy sports will overtake traditional fantasy sports in 5 to 7 years and that daily fantasy wagering will generate $2 billion in fees by the year 2020, versus less than $100 million today. This is a huge pie from which companies should be carving out their own slice.

I like Comcast Corporation (NASDAQ:CMCSA) for its strategic movement and entry. Fantasy sports are no longer isolated to the world wide web. Comcast is showing that it can (and should) move to home cable and even mobile offerings. As for the online realm, the industry itself will inevitably experience consolidation, and the final handful of survivors will eventually be acquired by the major media companies. That is why my money is on the media powerhouses like Comcast as long-term investments in this area.


Bill Edson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
Bill is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Can Fantasy Sports Drive Your Portfolio Higher? originally appeared on Fool.com is written by Bill Edson.

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