Joint rulers of the daily fantasy recreations (DFS) market DraftKings and FanDuel have actually walked away from a proposed merger of equals, less than a month following the Federal Trade Commission (FTC) moved to block the offer on grounds of antitrust ‘fair competition’ problems.
The offer’s off: DraftKing’s Jason Robins (left) and FanDuel’s Nigel Eccles announced on Thursday that their businesses would be going it alone, calling down a potential FTC fight on the grounds of antitrust violations. (Image: Reuters)
The 2 companies announced the termination of the tie-up on Thursday, simply days after they had each filed legal briefs to a federal district court, vigorously protecting the merger.
But with both companies already fighting lawsuits on several fronts, it appeared to be another costly and possibly condemned battle that is legal ahead. A source told ESPN that taking on the FTC would likely cost some $12 to $15 million.
Ironically, consolidation might have dramatically slice the amount of appropriate and costs that are lobbying two businesses spend fighting for legal DFS in states across the united states. It might also eliminate the costs associated with attempting to out-market one another.
The failure of the deal leaves both in precarious financial positions, as neither has ever been profitable. Papers related to the merger leaked last thirty days revealed that DraftKings has lo Continue reading DraftKings, FanDuel Jettison Merger Plans, Back Off From FTC Challenge