Joint rulers for the fantasy that is daily (DFS) market DraftKings and FanDuel have actually walked away from a proposed merger of equals, less compared to a month after the Federal Trade Commission (FTC) moved to block the deal on grounds of antitrust ‘fair competition’ dilemmas.
The deal’s off: DraftKing’s Jason Robins (left) and FanDuel’s Nigel Eccles announced on Thursday that their companies 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, just days after they had 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 as if another expensive and perhaps doomed appropriate battle lay ahead. A source told ESPN that accepting the FTC would likely cost some $12 to $15 million.
Ironically, consolidation could have dramatically cut the amount of appropriate and costs that are lobbying two businesses invest fighting for legal DFS in states across the united states. It would additionally eliminate the costs associated with attempting to out-market each other.
The failure of the deal leaves both in precarious financial positions, as neither has ever been profitable. Documents related to the merger leaked last thirty days revealed that DraftK Continue reading DraftKings, FanDuel Jettison Merger Plans, Back Away From FTC Challenge