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Will Thursday Night NFL Streaming Help Twitter (TWTR) Stock?

National Football League commissioner Roger Goodell announced Tuesday that the league has granted the rights to stream its Thursday night games to Twitter TWTR. Goodell actually

the announcement this morning.

The social media site won in a bidding war against Facebook FB, Amazon AMZN, and Verizon VZ, among others.

"Twitter is where live events unfold and is the right partner for the NFL as we take the latest step in serving fans around the world live NFL football," Goodell said in a statement.

The NFL did not announce the terms of the deal with Twitter. However, the league did say that all Thursday night games will be free on Twitter, and the rights package will also include highlights and pre-game Periscope broadcasts.

"This is about transforming the fan experience with football. People watch NFL games with Twitter today," said Twitter CEO Jack Dorsey. "Now they'll be able to watch right on Twitter Thursday nights."

It’s also important to note that this is not an exclusive rights package. In February, the NFL sold the rights to five Thursday night games to CBS CBS, and all Thursday night games are also broadcast on the NFL Network.

The NFL is America’s highest grossing sports league, bringing in about $13 billion in revenue last season. Twitter investors will be happy to welcome the cash cow that is American football, as the company is desperate for new revenue streams.

While it remains to be seen just how much Twitter paid for the rights, this deal is most likely going to be good news for Twitter investors in the long-run. Twitter’s user growth has been stagnant, but this deal will allow the company to further capitalize on its existing users. Furthermore, Twitter is now a valuable outlet for cord-cutters looking to get their NFL fix.

Twitter stock dipped at market open Tuesday, but shares quickly bounced back to their previous close. Of course, the NFL season is a couple quarters away, so it make take some time to see the impact of this deal on the company’s bottom line. Nevertheless, it will be interesting to see how investors trade the news today.

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CBS CORP (CBS): Free Stock Analysis Report
 
AMAZON.COM INC (AMZN): Free Stock Analysis Report
 
VERIZON COMM (VZ): Free Stock Analysis Report
 
FACEBOOK INC-A (FB): Free Stock Analysis Report
 
TWITTER INC (TWTR): Free Stock Analysis Report
 
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