DraftKings And FanDuel Abandon Fantasy Sports Merger
DraftKings and FanDuel desert dream sports merger
13 July 2017
Fantasy sports websites DraftKings and FanDuel have abandoned a plan to combine, less than a month after US competition regulators sought to obstruct the offer.
The offer would have created a company with control over 90% of the market for paid, everyday dream sports contests, government authorities stated.
The firms said the offer would lead to greater financial investment, providing benefits for consumers.
They stated they would now seek to grow individually.
FanDuel started in Scotland in 2009 and is now based in New york city. It is second in the US for paid daily fantasy sports contests behind DraftKings, which started in Boston in 2012.
Fantasy sport company FanDuel warns of threat from US policies
The 2 companies specialise in a subset of dream sports, in which fans choose players to produce teams for single games, instead of the season, with the possible to win money prizes based on the result.
In November, they stated they had actually consented to combine. Terms were not disclosed.
At the time, they stated the offer would enable them to combine forces on regulatory issues raised by US regulators, who had compared the market to prohibited gambling and prohibited the websites in some states.
Nigel Eccles, head of FanDuel, said it made good sense to progress individually.
"There is still enormous, untapped market opportunity for FanDuel, and we will continue to execute our strategy to grow our service and additional broaden the fantasy sports market," he said in a declaration.
Draft Kings president Jason Robbins also stated terminating the merger would permit the company to "singularly focus" on growth, including globally.
Last year there were an approximated 57 million dream sports players in the US alone.
DraftKings and FanDuel desert dream sports merger
13 July 2017
Fantasy sports websites DraftKings and FanDuel have abandoned a plan to combine, less than a month after US competition regulators sought to obstruct the offer.
The offer would have created a company with control over 90% of the market for paid, everyday dream sports contests, government authorities stated.
The firms said the offer would lead to greater financial investment, providing benefits for consumers.
They stated they would now seek to grow individually.
FanDuel started in Scotland in 2009 and is now based in New york city. It is second in the US for paid daily fantasy sports contests behind DraftKings, which started in Boston in 2012.
Fantasy sport company FanDuel warns of threat from US policies
The 2 companies specialise in a subset of dream sports, in which fans choose players to produce teams for single games, instead of the season, with the possible to win money prizes based on the result.
In November, they stated they had actually consented to combine. Terms were not disclosed.
At the time, they stated the offer would enable them to combine forces on regulatory issues raised by US regulators, who had compared the market to prohibited gambling and prohibited the websites in some states.
Nigel Eccles, head of FanDuel, said it made good sense to progress individually.
"There is still enormous, untapped market opportunity for FanDuel, and we will continue to execute our strategy to grow our service and additional broaden the fantasy sports market," he said in a declaration.
Draft Kings president Jason Robbins also stated terminating the merger would permit the company to "singularly focus" on growth, including globally.
Last year there were an approximated 57 million dream sports players in the US alone.