Joint rulers of the daily fantasy sports (DFS) market DraftKings and FanDuel have walked away from a proposed merger of equals, less compared to a month after 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 organizations would be going it alone, calling off a prospective 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 district that is federal, vigorously protecting the merger.
But with both companies already fighting legal actions on several fronts, it looked like another expensive and possibly condemned battle that is legal ahead. A source told ESPN that accepting the FTC would likely cost some $12 to $15 million.
Ironically, consolidation would 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 additionally take away the expenses associated with trying to out-market one another.
The failure of the deal leaves both in precarious positions that are financial as neither has ever been profitable. Papers related to the merger leaked final month revealed that D Continue reading “DraftKings, FanDuel Jettison Merger Plans, Back Off From FTC Challenge”