Flutter Entertainment (LON:UK:FLTR) said it's paying $4.2 billion to acquire 37% of FanDuel, the sports-betting and daily fantasy site, from Fastball. Flutter said the deal will take its Fanduel stake to 95% and materially increases its exposure to the U.S. market, "the most attractive sector opportunity today." Flutter said the deal will be combination of $2.09 billion in cash and the issue of approximately 11.7 million new Flutter ordinary shares directly to Fastball, which will then hold 7% of Flutter. Fox Corp. CEO Lachlan Murdoch said maintaining its ownership stake in Flutter signals its "ongoing confidence in management's ability to execute against the fast growing U.S. opportunity." Boyd Gaming (NYS:BYD) will continue to hold 5% of Fanduel, and Flutter intends to offer to FOX Sports the option to purchase 18.5% of FanDuel at fair market value in July 2021.
Dec. 3, 2020, 7:52 a.m. EST