Fantasy Sports Firms FanDuel and DraftKings Agree To Merge
Fantasy sports companies FanDuel and DraftKings concur to merge
18 November 2016
A Scottish tech company which ended up being a significant player in the US dream sports market is to merge with its biggest rival.
FanDuel, which was established in Edinburgh in 2009, has actually gone into a merger agreement with DraftKings.
The transaction, which undergoes regulatory approval, is expected to close in the second half of next year.
FanDuel has workplaces in Edinburgh and Glasgow but moved its head office to New York several years ago.
DraftKings has its headquarters in Boston.
The companies provide online dream contests across professional sports in the US, Canada and the UK.
Cost savings
There are an estimated 57 million fantasy gamers in the US alone.
Both companies have been facing regulatory and legal obstacles to their industry, with regulators in some US states ruling that dream sports companies' activities totaled up to unlawful betting.
In a joint statement on Friday, the companies stated that by combining and improving resources they could "speed up work with federal government authorities to continue to develop a standard regulative framework".
They likewise anticipate the "strategic merger of equals" to bring efficiencies and expense savings and assist the combined company "accelerate its course to profitability".
FanDuel president Nigel Eccles stated: "Being able to combine DraftKings and FanDuel provides a significant chance for us to further innovate and interfere with the sports industry.
"While both companies have achieved much currently, this deal will create a service that can provide a greater variety of offerings, attracting new users, including the tens of millions of season-long dream players that have not yet attempted our items.
Fantasy sports companies FanDuel and DraftKings concur to merge
18 November 2016
A Scottish tech company which ended up being a significant player in the US dream sports market is to merge with its biggest rival.
FanDuel, which was established in Edinburgh in 2009, has actually gone into a merger agreement with DraftKings.
The transaction, which undergoes regulatory approval, is expected to close in the second half of next year.
FanDuel has workplaces in Edinburgh and Glasgow but moved its head office to New York several years ago.
DraftKings has its headquarters in Boston.
The companies provide online dream contests across professional sports in the US, Canada and the UK.
Cost savings
There are an estimated 57 million fantasy gamers in the US alone.
Both companies have been facing regulatory and legal obstacles to their industry, with regulators in some US states ruling that dream sports companies' activities totaled up to unlawful betting.
In a joint statement on Friday, the companies stated that by combining and improving resources they could "speed up work with federal government authorities to continue to develop a standard regulative framework".
They likewise anticipate the "strategic merger of equals" to bring efficiencies and expense savings and assist the combined company "accelerate its course to profitability".
FanDuel president Nigel Eccles stated: "Being able to combine DraftKings and FanDuel provides a significant chance for us to further innovate and interfere with the sports industry.
"While both companies have achieved much currently, this deal will create a service that can provide a greater variety of offerings, attracting new users, including the tens of millions of season-long dream players that have not yet attempted our items.