{"id":241144,"date":"2022-11-04T19:03:29","date_gmt":"2022-11-05T00:03:29","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=241144"},"modified":"2022-11-09T15:43:05","modified_gmt":"2022-11-09T21:43:05","slug":"fox-settles-fanduel-litigation-against-flutter-entertainment","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/","title":{"rendered":"Fox Scores Victory in FanDuel Litigation, Wins Right to Buy 18.6 Percent Stake for $3.72B"},"content":{"rendered":"

A ruling revealed earlier today by New York\u2019s Judicial Arbitration and Mediation Services (JAMS) in Fox Corp.\u2019s (NASDAQ:FOXA) favor paves the way for the media company to acquire 18.6% of FanDuel.<\/p>\n

\"Fox
The FanDuel logo on a mobile phone. Fox won rights to acquire an 18.6% stake in the company following litigation against Flutter Entertainment. (Image: Flutter)<\/figcaption><\/figure>\n

The decision, which ends long-running litigation brought by Fox against FanDuel parent Flutter Entertainment (OTC:PDYPY), allows the broadcast giant to purchase a previously agreed to 18.6% interest in the sportsbook operator for $3.72 billion.<\/p>\n

FOX has a 10-year call option that expires in December 2030 to acquire 18.6% of FanDuel for $3.72 billion, with a 5% annual escalator,\u201d<\/strong> according to a statement issued by the media entity. \u201cFOX has no obligation to commit capital towards this opportunity unless and until it exercises the option.\u201d<\/strong><\/p><\/blockquote>\n

The JAMS litigation was filed by Fox more than 18 months ago. It stemmed from a rift between that company and Flutter over the price point at which the media behemoth could purchase 18.6% of FanDuel. Flutter sought what it perceived as fair market value, while Fox wanted the price the parent company paid \u2014 $4.175 billion in December 2020 \u2014 when it bought out investment firm Fastball\u2019s 37.2%\u00a0 interest<\/a> in FanDuel.<\/p>\n

Decision is Coup for Fox, Still Win for Flutter<\/h2>\n

Based on the above, the arbitration is a win for Fox, as it gets to gradually buy into the largest US sportsbook operator at a fair valuation.<\/p>\n

\u201cFOX is pleased with the fair and favorable outcome of the Flutter arbitration. Flutter cannot pursue an IPO for FanDuel without FOX’s consent or approval from the arbitrator,\u201d added the broadcaster in the statement.<\/p>\n

\n

However, Flutter isn\u2019t being left out in the cold. Fox is buying into FanDuel at a valuation of $20 billion, while Flutter\u2019s enterprise is around $24 billion. Additionally, FanDuel is by far the largest domestic online sportsbook operator, amassing a market share roughly equivalent to BetMGM and DraftKings (NASDAQ:DKNG) combined.<\/p>\n<\/div>\n

Plus, the legal proceedings were seen as hindering Flutter\u2019s plans<\/a> to spin off part of FanDuel to public investors via a US listing. That option could now be back on the table sometime in 2023.<\/p>\n

\u201cThis optionality over a meaningful equity stake in the market-leading US online sports betting operation confirms the tremendous value FOX has created as a first mover media partner in the U.S. sports betting landscape,\u201d <\/strong>noted Fox.<\/p>\n

Currently, Flutter owns 95% of FanDuel, while Boyd Gaming (NYSE:BYD) owns the remainder.<\/p>\n

Fox\/Flutter History<\/h2>\n

Fox is also a Flutter investor. It owns 2.5% of the gaming company. That relationship stems from Fox selling Sky Bet to The Stars Group (TSG) in 2018 for $4.7 billion. In 2020, Flutter shelled out $12.2 billion for TSG<\/a>, which owned Fox\u2019s FOX Bet unit at the time.<\/p>\n

As of this writing, Paddy Power hadn\u2019t issued a statement on the JAMS ruling. But its investor day is slated for Nov. 16, and the topic will likely be mentioned at that event.<\/p>\n

Bottom line: FanDuel\u2019s $20 billion valuation is a win-win-win for Boyd, Flutter, and Fox because that\u2019s nearly quadruple DraftKings\u2019 market capitalization at the close of US markets today.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

A ruling revealed earlier today by New York\u2019s Judicial Arbitration and Mediation Services (JAMS) in Fox Corp.\u2019s (NASDAQ:FOXA) favor paves the way for the media company to acquire 18.6% of FanDuel. The decision, which ends long-running litigation brought by Fox against FanDuel parent Flutter Entertainment (OTC:PDYPY), allows the broadcast giant to purchase a previously agreed […]<\/p>\n","protected":false},"author":46,"featured_media":241145,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,60,1074],"tags":[83573,80968],"acf":[],"yoast_head":"\nFox Settles FanDuel Litigation Against Flutter Entertainment<\/title>\n<meta name=\"description\" content=\"FanDuel valued at $20 billion after Fox Corp. wins JAMS ruling.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fox Settles FanDuel Litigation Against Flutter Entertainment\" \/>\n<meta property=\"og:description\" content=\"FanDuel valued at $20 billion after Fox Corp. wins JAMS ruling.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-05T00:03:29+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-09T21:43:05+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/FD.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/\",\"url\":\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/\",\"name\":\"Fox Settles FanDuel Litigation Against Flutter Entertainment\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/FD.jpg\",\"datePublished\":\"2022-11-05T00:03:29+00:00\",\"dateModified\":\"2022-11-09T21:43:05+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"FanDuel valued at $20 billion after Fox Corp. wins JAMS ruling.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/fox-settles-fanduel-litigation-against-flutter-entertainment\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/FD.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/11\/FD.jpg\",\"width\":1200,\"height\":800,\"caption\":\"The FanDuel Sportsbook logo. The gaming company will officially replace GambetDC in Washington, DC. 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