Imminent merger in DFS sector
Leading daily fantasy sports companies are one step forward to major merger.
US.- DraftKings and FanDuel would develop the international daily fantasy sports industry under one leadership, as the press has been suggesting in the last few weeks. The merger between the biggest daily fantasy sports operators is even closer, as members of both companies held a reunion where they set the plans to finish the deal.
DraftKings and FanDuel have been competing to conquer the US gaming market and they are facing the same legal battles against the States which have not regularised the sector yet. A unique company would join forces of both American giants and expand successfully the gaming services worldwide. Regulators would have to approve the merger first.
According to reports, the daily fantasy sports brands would agree on a 50/50 partnership and each core investors would receive three board seats in the leading team. Yesterday, former Fortune reporter Dan Primack commented that the merger announcement “is expected to come within the next week.”
However, neither DraftKings nor FanDuel have issued an official statement confirming the rumours. As revealed by the New York Times, the companies’ fusion may respond to the lack of incomes both brands are facing due to the extensive legal problems. The expectations are huge among members of the industry, especially when it comes to reveal who will be the CEO of the fusion and what the company’s targets would be.
