FanDuel and FOX Bet<\/a> operated independently of one another as part of a dual-brand strategy.<\/p>\n<\/div>\n\u201cThis created significant value for Flutter, in exchange for which it agreed to give Fox the guaranteed right to purchase 18.6 percent of the ownership stake in FanDuel that Flutter had the right to acquire from Fastball at the same price Flutter paid,\u201d according to the source.<\/p>\n
Fox wasn’t left out in the cold. When Flutter acquired TSG, the media company gained a 2.5 percent stake in the Irish gaming company, making it one of the FanDuel parent’s largest investors. Based on Flutter’s current market capitalization of $37.85 billion, Fox’s shares are worth $946.25 million.<\/p>\n
Seeing Things from Both Sides<\/h2>\n
For all the legal maneuvering and verbal jostling, the Fox\/Flutter state of affairs is relatively simple. The broadcaster wants to acquire 18.6 percent of FanDuel, as it has rights to do, and it wants to pay a certain price.<\/p>\n
Flutter previously said it intends to honor that agreement. But it wants to garner a higher price tag for its plum asset.<\/p>\n
Both companies’ positions are understandable because FanDuel exposure is lucrative. Analysts see the largest US online sportsbook operator adding to Fox’s bottom line<\/a>, while Flutter investors — of which Fox is one — stand to benefit because the investment community believes a FanDuel spin-off will be valued in excess of rival DraftKings’ (NASDAQ:DKNG) $25 billion market cap.<\/p>\n","protected":false},"excerpt":{"rendered":"Things between Flutter Entertainment (OTC:PDYPY) and Fox Corp. (NASDAQ:FOXA) are getting testy. The former eyes a spin-off of the FanDuel business, and the latter seeks a position in the online sportsbook operator on favorable terms. A source familiar with the matter told Casino.org that the media company has an agreement in place with the Irish […]<\/p>\n","protected":false},"author":46,"featured_media":169897,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,60],"tags":[],"acf":[],"yoast_head":"\n
Fox Says It Has Contract with Flutter for Price on FanDuel Investment<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n