The merger of DraftKings and FanDuel just wasn’t meant to be.
A statement from DraftKings CEO Jason Robins confirms that the two companies are no longer seeking a merger. He says that it is in the interest of the company’s “customers, employees, and investors” for it to remain separate from FanDuel.
FanDuel CEO Nigel Eccles also released a similar statement concerning the canceling of the merger with DraftKings. He also notes that it is in the company’s best interest to not merge with DraftKings. However, he also says that the merger would have presented opportunities for investment growth and the growing of the sports entertainment industry.
The merger plans between DraftKings and FanDuel were originally announced last November. The news of the merger came shortly after speculation that the two companies were planning such a move. It would have had them coming together as equals.
Despite DraftKings and FanDuel trying their best for a merger, there were multiple hurdles that ultimately led to the deal being called off. This includes the Federal Trade Commission (FTC) stepping in to block the merger. The FTC was planning to do this with a lawsuit, but now it doesn’t appear that will be necessary.
DraftKings’ and FanDuel’s have also been facing other troubles over the last few years. This includes claims that the daily fantasy sports are illegal gambling. Illinois Attorney General Lisa Madigan was one official that ruled this was the case. The two companies argued that they were games of skill, not luck.
As of this writing, William White did not hold a position in any of the aforementioned securities.
