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Twitter Gets The NFL For Peanuts

Summary

A report states Twitter is paying less than $10M for the rights to a 10-game NFL Thursday night package.

One catch: CBS and NBC will also broadcast the games and hold onto most of the digital ad inventory.

The deal highlights Twitter's strategic value to content owners and gives the company a cheap tool to boost engagement, especially in the U.S.

Though prior media reports suggested Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN), Verizon (NYSE:VZ), and Yahoo (NASDAQ:YHOO) were battling for digital rights to the NFL's Thursday night package, hard-luck Twitter (NYSE:TWTR) has won out, as first indicated by media reports and later confirmed in a PR. Shares are up slightly at the time of this article, after having risen 6.9% yesterday.

The details

A Re/code report states Twitter paid less than $10M for the rights to stream 10 of next year's 16 Thursday night NFL games, a tiny fraction of the $450M CBS (NYSE:CBS) and NBC (NASDAQ:CMCSA) paid for Thursday broadcast rights.

Why did Twitter land the deal for so little? It has much to do with the fact CBS and NBC will also broadcast the games (along with the NFL Network) and own most of their digital ad inventory - Twitter will reportedly "have the rights to sell a small portion of the ads associated with each game." Yahoo...


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