- Flutter Entertainment will be acquiring an additional 37.2% stake in FanDuel for $4.1 billion.
- Flutter will be purchasing the shares from Fastball Holdings.
- Flutter initially invested in FanDuel in 2018.
NEW YORK – Flutter Entertainment has decided to further invest in sports betting by acquiring more shares of the popular FanDuel sportsbook.
Futter is set to acquire an additional 37.2% of FanDuel from Fastball Holdings. This purchase will give Flutter 95% ownership of FanDuel.
This is a major investment by Flutter Entertainment into FanDuel. Flutter views legal sports betting as the most attractive sector opportunity today.
Flutter Goes All In On Sports Betting
*Flutter to Increase Stake in FanDuel
• Flutter Entertainment to acquire 37.2% interest in FanDuel for $4.175 billion in cash and stock, implying $11.2 billion valuation
• Company’s ownership stake in FanDuel to increase to 95% (currently 57.8%)
— Roundhill Investments (@roundhill) December 3, 2020
This major acquisition will cost Flutter Entertainment over $4.1 billion. The deal will be a combination of 2.09 billion in cash value and a 15% new Flutter ordinary shares being directed to Fastball Holdings.
Fox Corporation will now own a stake in Flutter following aiding Flutter with funding the purchase. Fox Corporation will also be allowed to purchase 18.55% of FanDuel in July 2021.
“Today’s news affirms FanDuel’s market-leading position in the US and our meaningful growth trajectory,” said Matt King, the CEO of FanDuel. “As the first online operator to reach more than $1bn in Global Gaming Revenues, with around $850m expected in net revenue this year, despite COVID disruption, we now have 9.5m customers betting across our best-in-class product verticals, and a 43% market share in the states that allow sports betting in Q3. Based on our current projections, we expect our online sportsbook to be available in 14 states and our online gaming products to be in four states by the end of 2021. I look forward to leading FanDuel into the future under a clear ownership structure and at a time when the regulation of sports betting and online gaming continues to accelerate in the U.S.”
Flutter’s initial 58% stake in FanDuel was purchased back in 2018. As FanDuel grew to become a market leader in regulated sports betting, Flutter’s early investment didn’t take long to pay off.
Following the announcement of the new purchase, Flutter Entertainment’s shares increased by 12% in London. Fox Corporation’s early investment in Flutter has also been profitable for the company.
“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 US opportunity,” said Lachlan Murdoch, the executive chairman and CEO of Fox Corporation. “FOX’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 US brands.”
The purchase will take some time to be completed with regulatory approval needed and the large sum taking a while to acquire. Sports betting has continued to be a proven positive investment for many companies.
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Coming from a background in narrative-based writing, Giovanni strives to write stories that will keep the reader engaged. Although he does pride himself in being accurate, how the story is told is also very important to him. When he’s not keeping readers up to date on sports betting laws and legislation, you can find him writing and recording music, playing videogames, or engaged in heated sports debates with his friends.