Fox Wins Right to Purchase FanDuel Stake

Details: Category: Gambling Industry; Created: Sunday, 06 November 2022 08:41

Fox won the right to purchase FanDuel stake from its parent company Flutter. However, the price was not what they expected. Should Fox choose to buy the 18.6 percent stake, its price would be at least $3.72 billion.

The ruling puts an end to the lengthy legal dispute between the two businesses over how much FanDuel should be valued at. Along with services from DraftKings, Caesars, and MGM, FanDuel has become one of the top sports betting platforms in the United States.

According to bookie pay per head sources, Fox would be required to pay a sum based on a $20 billion FanDuel value. At an anticipated price of $11.2 billion, Flutter, which owns about 95% of FanDuel, purchased a 37.2 percent share in the business in December 2021. Fox had contended that the cost ought to be determined by that bar.

Fox to Purchase FanDuel Stake

Fox may have been made to pay considerably more, though. According to a Jeffries analysts' estimate from March 2021, FanDuel's valuation may reach $35 billion, valuing a nearly one-fifth ownership at closer to $6 billion.

According to sportsbook PPH reports, the 10-year option for Fox to buy the share expires in December 2030. The arbitrator determined that the acquisition price would increase by 5% annually, making the current price of a deal $4.1 billion.

According to Fox, the arbitrator's decision prohibits Flutter from pursuing an IPO for FanDuel without Fox's permission or the arbitrator's approval. Flutter, on the other hand, refuted the assertion and subsequently said in a statement to CNBC that, should an IPO of FanDuel go through, Fox does not have a veto on it.

Flutter has previously thought about going public with FanDuel to capitalize on the expanding sports betting industry. They should know common sportsbook operator mistakes to avoid.

As more jurisdictions provide legal sports betting online, the popularity of sports betting in the United States has increased. As of November 1, 33 states permit some sort of sports betting, with two initiatives to legalize it on the ballot in California.

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