Global bookmaker Flutter Entertainment has upped its stake in US fantasy sports company FanDuel to 95% after confirming its accelerated acquisition of outstanding units from Fastball Holdings.
This news follows the company’s announcement of a $4.175 billion conditional agreement to acquire the 37.2% interest in the group previously owned by Fastball Holdings.
“Flutter’s initial acquisition of a controlling stake in FanDuel in 2018 has been transformational for the shape of the group. Our number one position in the crucial US market is built on many of the assets we acquired through that transaction, supported by the broader group’s capabilities,” Peter Jackson, Flutter’s chief executive, said.
“Our intention has always been to increase our stake in the business, and I’m delighted to be able to do so earlier than originally planned and at a discount to its closest peer. I would like to take this opportunity to thank our partners in Fastball for their tremendous support over the last two and a half years and for their ongoing commitment to Flutter as soon-to-be shareholders in the wider group,” he added.
Jackson also said they were looking forward to steadily growing their business in the US together with their key media partner Fox, as more and more states move towards regulating sports betting and gaming.
Earlier this week, it was reported that 99.9% of Flutter shareholders voted in favor of pushing forward with the deal with FanDuel, after having raised around £1.1 billion from investors, including Rupert Murdoch’s Fox Corporation.
“We are delighted to participate in this capital raising. 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,” Lachlan Murdoch, CEO and Executive chairmen of Fox Corporation, said.
“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,” he added.