Joint rulers of the daily fantasy activities (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’ issues.
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 down a prospective FTC fight in the grounds of antitrust violations. (Image: Reuters)
The two companies announced the termination of the tie-up on Thursday, just days after they’d each filed legal briefs to a federal district court, vigorously defending the merger.
But with both companies already fighting legal actions on several fronts, it appeared to be another expensive and perhaps condemned battle that is legal ahead. A source told ESPN that accepting the FTC would likely cost some $12 to $15 million.
Ironically, consolidation might have dramatically cut the amount of legal and lobbying costs the two businesses invest fighting for legal DFS in states across the united states. It might additionally eliminate the costs associated with trying to out-market the other person.
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 DraftKings Continue lendo “DraftKings, FanDuel Jettison Merger Plans, Back Away From FTC Challenge”