has come alongside a global market shift for many sports betting companies. That’s particularly noteworthy, given that FanDuel’s success in the U.S. That option increases by 5% each year, regardless of how FanDuel’s actual valuation changes. It’s unclear how big Flutter wanted the valuation to be the arbitrator’s ruling said Fox’s option is currently worth $3.72 billion, which translates to a valuation of about $20 billion. Flutter believed Fox should have to pay fair market value as of July 2021, as determined by outside banks. Fox believed it should be able to buy in at an $11.2 billion valuation, which was the valuation on the company when Flutter bought a large chunk in late 2020. Not only were the two sides in disagreement about the option, they also disagreed on the price. When Flutter bought The Stars Group, Fox believed the option would translate to a ten-year option to buy 18.6% of FanDuel. When Fox Bet launched in 2019 within The Stars Group, Fox was given a ten-year option to buy 50% of The Stars Group’s U.S. Fox Bet could eventually be folded, a decision that might suit both Fox and Flutter.
Fox Bet, by contrast, is at most in the low single digits. market in 2021, according to numbers from Eilers & Krejcik, followed by DraftKings (24%) and BetMGM (15%). That could certainly still happen following this ruling, though it would need to include input from Fox.įox Bet, on the other hand, has struggled to gain traction-FanDuel had 36% of the U.S. FanDuel has emerged at the early leader in online sports betting in the U.S., and Flutter has been mulling a FanDuel IPO for years. The decision should pave the way for both companies to assess the future of both FanDuel and Fox Bet. “Today’s ruling vindicates the confidence we had in our position on this matter and provides certainty on what it would cost Fox to buy into this business, should they wish to do so,” Flutter CEO Peter Jackson said in the statement. It also pushed back on Fox’s interpretation of the IPO portion of the ruling, saying I will not attempt a FanDuel IPO until either an agreement is made with Fox, or a more definitive ruling comes from the arbitrator. It cited Fox’s strike price, higher than the media company initially wanted. Flutter said in a statement that it was also happy with the arbitrator’s ruling. sports betting landscape.”įanDuel declined to comment. online sports betting operation confirms the tremendous value Fox has created as a first mover media partner in the U.S. “This optionality over a meaningful equity stake in the market leading U.S. “Fox is pleased with the fair and favorable outcome of the Flutter arbitration,” the statement said.
The arbitrator also ruled that FanDuel cannot IPO without an agreement with Fox, and that Flutter does not have to dedicate equal resources to the two brands, which it currently isn’t doing. The ruling affirms Fox’s ten-year right to buy into FanDuel, starting at a $20 billion valuation, the statement said, a number higher than Fox’s original proposal and lower than Flutter’s. A New York arbitrator issued a decision Friday, according to a Fox statement.
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