FanDuel to get further funding after failed merger

Investors in FanDuel may be forced to inject more money into the company after the FTC blocked the merger with DraftKings.

US.- After the US Federal Trade Commission (FTC) blocked its merger with rival DraftKings, FanDuel will need its investors to inject more funds into the company. One of the two biggest Daily Fantasy Sports (DFS) operators was betting on the merger to help its operation, whose accounts for the period to December 31, 2015 are behind schedule.

According to The Sunday Times, the funding would add up to the US$350 million investors have supplied the company since its foundation in 2009. Shamrock and Scottish private equity group, Pentech, KKR and Scottish Enterprise are some of FanDuel’s capitalists who might have to put more money into it, even if the company looks for new potential ones.

The FTC blocked Fan Duel’s merger with DraftKings and released a statement in June where it was detailed that the merger attempted against a free market, as the “combined firms would control more than 90 percent of the US market for paid daily fantasy sports contests.”

However, both companies replied last week denying that a possible merger would block customers the opportunity and benefits of the direct competition