Paddy Power Betfair Acquire FanDuel In Move To Dominate Sports Betting Landscape
Following recent reports it has now been confirmed that daily fantasy sports provider FanDuel have been acquired by Paddy Power Betfair. This move follows the US Supreme Court decision legalizing sports betting in the US.
The hectic rush to gain market share in the sports betting market is growing by the day. FanDuel’s 7 million registered users are key to Paddy Power Betfair’s plans to become a major player in the legal sports betting market in the US.
In terms of the deal Paddy Power will merge its assets with FanDuel and pay an addition $158 million in cash. This cash will be used by FanDuel to reduce their existing debt. The deal structure will see Paddy Power own 61% of the combined entity with options to increase their ownership to 80% after three years and 100% after a five year period. The total value of the deal is set to be worth around $1 billion.
FanDuel CEO Matt King commented on the deal and said,” The talks have been ongoing well before the Supreme Court decision. We’ve had a relationship with the company for a long time.” The new merger is aimed at making FanDuel the largest gaming operator in the US ahead of their rival DraftKings.
Another previous acquisition DRAFT was acquired by Paddy Power Betfair last year for $48 million. This now will be merged in the new combined entity according to King.
Further details like who will head of the combined entity have yet to be announced and according to sources from both parties there is a lot of “excitement and anxiety” about the transition.