FanDuel sets new plans
FanDuel decided to rise investors’ equity after the merger plans with DraftKings were dismissed.
US.- After the merger between both major leaders of the sports betting industry of the United States, FanDuel and DraftKing, was dismissed new plans for FanDuel’s financial status emerged. According to the international press, the gaming company decided to give further equity to current investors after the merger plan failed.
“Those who bought into the company in 2014 via a US$70 million fundraising led by Los Angeles private equity house Shamrock Capital Advisors – an investment vehicle for the Disney family – have been awarded one new share for every two existing shares they held in the company,” reveals the Herald Scotland.
“Investors who participated in a US$275 million fundraising led by private equity giant Kohlberg Kravis Roberts (KKR) in 2015, meanwhile, have been awarded 2.35 new shares for every existing share,” continues.
The Federal Trade Commission (FTC) announced the authorisation of legal action to block the project of the two DFS giants late last month because it was believed that the merger attempted against a free market, as the combined firms would’ve controlled more than 90 percent of the US market for paid daily fantasy sports contests, the FTC said. Moreover, the commission also complained that the proposed merger was in violation of the Section 7 of the Clayton Act and Section 5 of the FTC Act. Tad Lipsky, Acting Director of the FTC’s Bureau of Competition, had said that the merger would’ve deprived customers of the substantial benefits of direct competition between both companies.
