Online betting giant Flutter Entertainment announced that they're upping their stake in sportsbetting brand FanDuel from 57.8% to 95% for $4.18 billion.
The deal will see Flutter paying $2.09 billion to investor group Fastball, with $1.48 billion in cash and the rest being paid with 11.7 million shares of Flutter. The price of the stock is valued at $178.46 per share as of December 3rd, 2020, making up the full valuation of the deal.
Flutter is planning to keep a majority in the company but will try to sell Fox Sports 18.5% of the company at some point next year.
FanDuel is a major player in the American betting market, offering sportsbetting, daily fantasy, and even online casino games to customers in states where the activity is regulated. The group is slated to launch in Michigan in the near future, and is already operational in New Jersey, Pennsylvania, and other states.
In a release FanDuel CEO Matt King wrote: "Today's news affirms FanDuel's market-leading position in the US and our meaningful growth trajectory. 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."