
Joint rulers of the day-to-day fantasy activities (DFS) market DraftKings and FanDuel have actually walked away from a proposed merger of equals, less than a month after the Federal Trade Commission (FTC) moved to block the deal on grounds of antitrust ‘fair competition’ issues.
The deal’s off: DraftKing’s Jason Robins (left) and FanDuel’s Nigel Eccles announced on Thursday that their organizations would be going it alone, calling down a possible 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 appropriate briefs to a federal district court, vigorously defending the merger.
But with both companies already fighting lawsuits on several fronts, it appeared to be another high priced and possibly doomed battle that is legal ahead. A source told ESPN that accepting the FTC would likely cost some $12 to $15 million.
Money Worries
Ironically, consolidation might have dramatically cut the amount of legal and lobbying costs the two companies spend fighting for legal DFS in states across the usa. It would additionally remove the costs associated with attempting to out-market the other person.
The failure of the deal leaves both in precarious financial positions, as neither has ever been profitable. Papers related to the merger leaked final thirty days revealed that DraftKings has lost a sta