A panel of arbitrators has reached a decision in the disagreement between Flutter Entertainment and Fox Corporation regarding the worth of FanDuel, a US-based fantasy sports and internet gaming enterprise. The panel concurred with Flutter’s appraisal that FanDuel held a value of $20 billion in December 2020.
This judgment carries substantial consequences for Fox, which possesses an option to purchase an 18.6% share in FanDuel. The purchase price of this option, as per the ruling, should be determined using the $20 billion valuation. This figure will also escalate annually by 5% until December 2030, the point at which Fox can exercise its option. This implies Fox could potentially disburse $4.1 billion for its stake, based on a projected FanDuel valuation of $22 billion in 2030.
The contention emerged subsequent to Flutter’s acquisition of a 37.2% stake in FanDuel from Fastball Holdings in December 2020 for $11.2 billion. Fox, which had commenced arbitration in April 2021, contested Flutter’s understanding of the option contract.
Moreover, the arbitration panel rejected Fox’s assertions that Flutter had neglected to furnish sufficient backing for the functioning of Fox Bet, an alternative online wagering platform. The panel aligned with Flutter, confirming that the company had indeed supplied appropriate business resources to Fox Bet.
The conditions and agreements surrounding Fox’s participation in a possible public offering of FanDuel’s parent organization, Flutter, have been a source of dispute. Flutter has explicitly declared that any prospective IPO will not proceed until all unresolved matters are settled through legal proceedings or a bilateral accord is reached.
A judgment from the arbitration panel is anticipated in the early months of 2024.
Flutter’s chief executive, Peter Jackson, conveyed assurance in their stance, noting that the decision furnishes a definite assessment for Fox should they opt to purchase the enterprise. He stressed FanDuel’s supremacy in the American market, underscoring their exceptional offerings and effective client acquisition. Jackson reaffirmed the team’s dedication to upholding their frontrunner status and indicated that additional information would be shared at the US Capital Markets Day on November 16th.