FanDuel Looking To Go Public Via Platinum Eagle SPAC
Since the failed merger between DraftKings last year, daily fantasy sports provider FanDuel has been looking for an exit strategy. The latest news is that they are planning a “reverse merger” with a “special purpose acquisition company (SPAC) who are a publicly traded company linked to Hollywood Exec Jeff Sagansky.
In a report from Axios FanDuel is in advanced talks to sell a part of themselves to Platinum Eagle Acquisition Group which would be another way of going public. The idea is that special purpose acquisition companies like Platinum Eagle raise money from public investors with the aim of buying companies like FanDuel.
FanDuel much like DraftKings have had to pay hefty legal costs in the past few years as many state regulators went after them with the claim that they are nothing more than real money gambling companies and their business model of the last few years was not legal. This resulted in massive legal bills and loss of external funding which was vital for their huge marketing and acquisition campaigns. The amount that Platinum Eagle would spend and acquire on FanDuel is unclear. FanDuel declined to comment on the reports.