Fanduel boss upbeat after merger call-off
The co-founder of Fanduel said there was “still enormous, untapped market opportunity” for the fantasy sports firm after a merger with rival Draft Kings was abandoned.
The two firms, which dominate the fantasy sports markets in the US, had agreed to a merger in November although terms were never disclosed.
However, the plans have now been scrapped following concerns raised by US competition watchdogs about the impact of the tie-up on the market. Nigel Eccles, who co-founded Fanduel in Edinburgh, said it now made sense to move forward independently.
“There is still enormous, untapped market opportunity for Fanduel, and we will continue to execute our strategy to grow our business and further expand the fantasy sports industry,” he said in a statement.
Draft Kings chief executive Jason Robbins also said terminating the merger would allow his firm to “singularly focus” on growth, including internationally.
After reviewing the proposed deal, the Federal Trade Commission (FTC) in the US, along with attorneys general from California and the District of Columbia, said they would look to block the merger over competition concerns.
The FTC yesterday said the announcement was a victory for consumers who had benefited from the innovation and competitive pricing which rivalry between the two firms had created.
“If this merger had been allowed to go through, those benefits would likely have been lost,” it said.