Welcome to See King Alpha's Wall Street breakfast, where we cover the top news for investors every morning.

Good morning. Today is Wednesday, August 9th, and I'm your host Julie Morgan.

Disney and Penn have reached a deal to create ESPN Bet.

Amazon is the latest heavyweight and talks to anchor Arms IPO,

and China's CPI falls for the first time in more than two years.

Here's what's making headlines today.

ESPN is moving firmly into sports betting,

entering a deal with Penn Entertainment for an ESPN birthday. into sports

book in the United States.

Penn Entertainment on Tuesday Penn Entertainment broke sharply higher in postmarket trading

on Tuesday after the company

inked an exclusive deal with ESPN and sold its bar stool property.

The deal will see Penn pay ESPN $1.5 billion over 10 years as part of the strategic partnership.

ESPN Bet will debut this fall in the heat of the college and pro football seasons

and get an exclusive trademark for 10 years.

For its part, Penn gets access to ESPN's customer base on digital,

including social ESPN plus subscribers and a fantasy database. ESP N receives 1.5 billion dollars in cash over the initial term for marketing and branding

500 million dollars in warrants with strike prices at $26 per pen share and higher and bonus

warrants if it hits certain market measures.

E-SPN's parent company Disney reports earnings today post-market.

Pre-market Penn is up 10% and Disney is up 1%.

We've got a full analysis of the positive reaction for Penn shares, and this deal with ESPN is a game changer.

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