FanDuel DraftKings merger in danger
The merger between the DFS giants is currently in danger as the FTC believes it would threaten competition.
US.- The US Federal Trade Commission might be worried that a potential merger between DraftKings and FanDuel could endanger the competition in the daily fantasy sports market. The news were revealed by Recode this week.
The DFS giants announced last year the possibility of becoming one. CEO of DraftKings, Jason Robins, said back in December that they were focused on getting a deal done, as the FTC was studying the procedure to make sure that no anti-trust laws were being violated. “Even though DraftKings and FanDuel for a long time have had a bitter rivalry, I have been so pleasantly surprised and thrilled as I have gotten to know the people over there. It’s so similar in terms of who the people are, a lot of people passionate about the product and a lot of people passionate about the fantasy sports industry,” he commented.
The merger between these companies would occupy approximately 80 percent of the entire market, and that’s the main reason why the FTC is being cautious when it comes to DraftKings and FanDuel. As Recode said, agency commissioners could vote on the matter this week, or even next one.
Daniel Wallach, a lawyer at Becker & Poliakoff in Florida, said to the news outlet that from the companies’ perspective, “the broader the marketplace, the better it looks for their proposed combination.” The more persuasively they can make that case, the more likely they are to survive antitrust scrutiny, he added.
