Gambling Giant Flutter Completes Purchase of FanDuel Share

Gambling company Flutter Entertainment this week closed a previously announced $ 4.2 billion deal to raise its stake to 95% in American sports betting and daily fantasy sports firm FanDuel.

In 2018, Flutter merged its US operations with FanDuel. In early December, the Irish gambling giant announced that it would exercise the option prior to a previously agreed schedule in July 2023 to buy 37.2% of FanDuel.

The deal was a combination of cash and stock. Flutter raised £ 1.1bn from investors including Rupert Murdoch’s Fox Corporation to partially finance the purchase.

The newly purchased share of the gambling operator was previously owned by Fastball Holdings, a consortium of investors led by private equity firm KKR. The remaining 5% of FanDuel shares will remain with the American casino operator Boyd Gaming.

Flutter plans to pay for its FanDuel stake of approximately $ 2.09 billion in cash and by issuing nearly 11.7 million new common shares directly to Fastball Holdings.

According to the company, the deal was supported by 99.9% of Flutter shareholders at a meeting held on December 29.

According to CEO Peter Jackson, the deal will significantly increase Flutter’s presence in the US market at a time when more and more states are accepting sports betting and online gaming. The CEO continued that they also acquired the stake "at a significant discount over our own estimate of the intrinsic value of the business."

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