• About Us / Contact
  • Responsible Gambling
This site contains commercial content
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News
No Result
View All Result
SportsHandle
No Result
View All Result

Flutter Poised To Own 95% Stake In FanDuel Following Accelerated Acquisition

The transaction values FanDuel at $11.2 billion, raising the possibility of a U.S. spinoff

Matt Rybaltowski by Matt Rybaltowski
December 3, 2020
in Industry
flutter fanduel stake

Photo by Brett Smiley

Share on FacebookShare on Twitter

Flutter announced Thursday that it has entered into a conditional agreement with a group of private equity investors to purchase an additional 37.2% stake in FanDuel for $4.18 billion in a deal that values the U.S. sports betting and daily fantasy sports operator at $11.2 billion.

Flutter, one of the world’s largest gaming companies, initially purchased a 57.8% stake in FanDuel in May 2018, days after the Supreme Court’s historic PASPA decision. Although the 2018 deal gave Flutter the option of purchasing the additional stake in two separate tranches – in 2021 and 2023 – Flutter indicated Thursday that the investors accepted the accelerated deal at a discount to fair market value.

Upon approval of the deal, Flutter will own 95% of FanDuel with Boyd Interactive Gaming maintaining the additional 5% ownership stake.

β€œFlutter’s initial acquisition of a controlling stake in FanDuel in 2018 has been transformational for the shape of the Group. Our No. 1 position in the crucial U.S. market is built on many of the assets we acquired through that transaction, supported by the broader group’s capabilities,” Flutter CEO Peter Jackson said in a statement.

Flutter Entertainment – Accelerated Acquisition of FanDuel. The Transaction price of $4.175bn implies an enterprise value for FanDuel of $11.2bn. FanDuel has over 9.5 million customers, so Flutter deal values each FanDuel customer at $1,180 https://t.co/ONeKi9XKbG @FanDuel

— chris akers (@sportschris) December 3, 2020

U.S. market expansion

Flutter will fund the acquisition with approximately $2.08 billion in cash and the remainder through the issuance of 11.7 million new ordinary shares to Fastball Holdings LLC, the group of private equity investors. The cash element will be funded through cash on the company’s balance sheet, and an equity placing to raise approximately GBP 1.1 bn, Flutter said in a statement.

Flutter’s enterprise value of $11.2 billion represents a 40% discount to chief rival DraftKings, which is valued at around $19.9 billion, and is a publicly owned company traded on the NASDAQ.

Flutter taking its stake in FanDuel to 95% via $4.2bn deal. Not a bad price for $FLTR while also highlighting the value of the asset. $PDYPYhttps://t.co/h1ajXoDGt2

— Luis V. Sanchez (@LuisVSanchez777) December 3, 2020

“Our intention has always been to increase our stake in the business and I’m delighted to be able to do so earlier than originally planned and at a discount to its closest peer,” Jackson said.

In October 2019, Flutter announced the acquisition of The Stars Group for approximately $6.95 billion. Months earlier, Fox Sports entered into an agreement to purchase a 4.99% stake in The Stars Group, the parent company of PokerStars. The historic agreement established FOX Bet and marked the first time a major broadcast company took an equity stake into a sportsbook.

Fox Sports retains the option of purchasing an 18.5% minority stake in FanDuel Group.

“We are delighted to participate in this capital raising. Maintaining our ownership stake in Flutter signifies our long-term commitment to Flutter, and ongoing confidence in management’s ability to execute against the fast growing U.S. opportunity,” Fox Executive Chairman and CEO Lachlan Murdoch said in the statement.

β€œFox’s audiences have proven to be highly engaged with free to play and wagering content, and we are excited to offer them access to products from Flutter’s market leading stable of U.S. brands,” Murdoch added.

The deal increases the possibility that Flutter could consider a spinoff of U.S. assets such as FanDuel and FOX Bet.

Looks like December is dealmaking season in the sports betting world! Interesting to see Flutter swallow the rest of FanDuel this year https://t.co/bWFxlQCxIs

— Elliot Turner (@ElliotTurn) December 3, 2020

The transaction announced Thursday terminates Fastball’s interest in FOX Bet, Flutter said in the statement.

Flutter shares soar

In many respects, FanDuel can stake the claim as the top online sportsbook in the nascent U.S. sports betting market. In terms of online sports betting, FanDuel controls a 33.4% share of the U.S. market, according to Eilers & Krejcik Gaming, a boutique research and consulting firm. The market share is the highest of any sportsbook operator nationwide.

By the end of 2021, Flutter expects its online sports betting products to be available in U.S. states accounting for approximately one-third of the U.S. population. Based on Flutter’s estimates, the market reach translates to $9.1 billion in gross gaming revenue, the company said Thursday.

On the London Stock Exchange, shares of Flutter Entertainment plc surged more than 13% on the news.

The transaction was consummated on the condition of shareholder approval.

ShareTweetShare
Matt Rybaltowski

Matt Rybaltowski

Matt is a veteran writer with a specific focus on the emerging sports gambling market. During Matt's two decade career in journalism, he has written for the New York Times, Forbes, The Guardian, Reuters and CBSSports.com among others. In his spare time, Matt is an avid reader, a weekend tennis player and a frequent embarrassment to the sport of running. Contact Matt at [email protected]

Related Posts

Arizona January 2023 revenue report
Analysis

Arizona Puts Bow On Record-Setting January For U.S. Sports Wagering

March 27, 2023
whats on tap
Industry

What’s On Tap: Elite Eight, WBC Finals, And Texas Sports Betting Hearing

March 20, 2023
Load More

Top Stories

taylor mathis

Taylor Mathis Got Sacrificed At The Altar Of Responsible Gambling

March 20, 2023
fanduel baseball wall

Premade Same Game Parlays Are Sucker Bets

March 13, 2023
maginfier-over-small-print

Read The Fine Print: A Proposed Federal Rule Could Change Everything For Indian Gaming

March 6, 2023
roman reigns wwe

Colorado Denies Report Stating That It’s Considering WWE Wagering

March 8, 2023

State Sports Betting Guides

Ohio (U.S. state) flag waving against clear blue sky, close up, isolated with clipping path mask alpha channel transparency, perfect for film, news, composition

Ohio Sports Betting – Where To Play, Bonus Offers And Promo Codes

by Brian Pempus
March 30, 2023

Downtown Detroit at twilight (Shutterstock)

Michigan Sports Betting – Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 27, 2023

VA captial

Virginia Sports Betting – Where To Play, Online Sportsbooks And Bonus Offers

by Brett Smiley
January 17, 2023

nj flag

New Jersey Sports Betting — Where To Play, Online Sportsbooks, And FAQ

by Brett Smiley
March 22, 2023

pa online sportsbooks

Pennsylvania Sports Betting – Where To Play, Online Sportsbooks And Bonuses

by Brett Smiley
October 6, 2022

Canada Sports Betting Guides

Canada Sports Betting – Best Sportsbook Apps & Bonus Offers

British Columbia Sports Betting – Legal Update, Available Sportsbooks, and FAQ

Ontario Sports Betting – Legal Status And Where To Play

SportsHandle

  • Analysis
  • Casino
  • Features
  • Horse Racing
  • Industry
  • Legal
  • Legislation
  • Opinion
  • Podcasts
  • Poker
  • Politics
  • Promotions
  • Regulation
  • Sports
  • Uncategorized

Better Collective

This website is owned and operated by Better Collective USA. Trademarks and copyrights referenced on this website are and shall remain the exclusive property of their respective owners and/or licensors. Please be sure to visit the operator’s website(s) to review their terms & conditions. We advise you to read these carefully as they contain important information. Copyright Β© 2023 USBets.com | Better Collective USA
21 Play Responsibly
Gamble Aware West Virginia
Gambling Problem? Call 1-800-Gambler.
GameSense

Search Sports Handle

No Result
View All Result
  • About Us / Contact
  • Responsible Gambling

No Result
View All Result
  • US Sports Betting
    • Arizona
    • Arkansas
    • Colorado
    • Connecticut
    • Delaware
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Louisiana
    • Maine
    • Maryland
    • Massachusetts
    • Michigan
    • Mississippi
    • New Jersey
    • New Mexico
    • New York
    • Ohio
    • Oregon
    • Pennsylvania
    • Tennessee
    • Virginia
    • West Virginia
    • Wyoming
  • Pending States
    • California
    • Florida
    • Georgia
    • Missouri
    • North Carolina
  • Canada
    • Ontario
    • British Columbia
    • Alberta
  • Sportsbook Apps
    • FanDuel
    • BetMGM
    • Caesars
    • PointsBet
    • BetRivers
  • Tools
    • Sportsbook Bonuses Explained
    • Sports Betting Revenue Tracker
    • Sports Betting Podcasts
    • Partnership Tracker
    • Expected Value
    • Sports Scores And Odds Apps
    • Sports Betting Twitter
  • News

loading

Please wait while you are redirected to the right page...