A dispute between gaming titans Flutter and Fox regarding the worth of FanDuel has concluded, with an arbitration panel ruling in favor of Flutter. The panel affirmed Flutter’s $20 billion assessment of FanDuel, a sum considerably larger than Fox’s appraisal.
This judgment originates from a 2020 accord where Flutter procured a 37.2% share in FanDuel, appraising the firm at $11.2 billion then. The latest verdict signifies that Fox will be obligated to disburse a substantial amount should they opt to execute their right to acquire an 18.6% interest in FanDuel.
The cost for Fox? A substantial $4.1 billion. This figure incorporates a yearly 5% increment on the original $20 billion valuation, applicable until the end of 2030 when the purchase window shuts.
The conflict emerged in 2021 when Fox commenced arbitration, citing discrepancies regarding the conditions of the FanDuel stake acquisition. Fox additionally asserted that Flutter had not sufficiently backed the activities of Fox Bet, an allegation the panel entirely rejected.
FanDuels anticipated public offering has encountered a slight delay due to Fox’s assertions regarding their stake in FanDuels parent company, Flutter. Fox contends they possess specific entitlements and stipulations linked to any prospective FanDuel IPO. Flutter has firmly stated that an IPO is contingent upon resolving the matter with Fox, either through mutual consent or arbitration.
A court ruling on the issue is projected in early 2024.
Flutter’s Chief Executive, Peter Jackson, expressed satisfaction with the current state of affairs. He believes the situation substantiates their stance and establishes a definitive valuation for Fox’s potential acquisition of the business. Jackson commended FanDuel as the clear leader in the US market, emphasizing their accomplishments.
He concluded by stating that the team remains dedicated to maintaining their dominant position and will provide an update on their progress at the US Capital Markets Day on November 16th.
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