US Daily Fantasy Sports Merger Nixed By FTC

Published Sunday, July 16, 2017 - Online-Casinos.com
US Daily Fantasy Sports Merger Nixed By FTC

The latest trend for sports punters daily fantasy sports betting has become a major source of entertainment for many. A deal between rival Fantasy Sports Betting firms FanDuel and DraftKings was proposed last November 2016 with Nigel Eccles CEO & Co-founder of FanDuel saying back then, “Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry.”

Now however the two firms have scrapped their merger plans after their proposal was rejected by the US Federal Trade Commission. The companies were scheduled to appear before the FTC national consumer protection agency to consider their merger plan. The companies withdrew from the conference an announced that they will focus on pursuing their own development and direction.

The FTC has estimated the two companies held as much as 90% of the daily fantasy sports betting market in the USA which caused concern over the impact of a merger on the competition.

DraftKings chief executive, Jason Robbins, also commented on the decision,  “We have a growing customer base of nearly eight million, our revenue is growing over 30 per cent year-over-year, and we are only just beginning to take our product overseas to the billions of international sports fans we have yet to even reach.”  Robbins continued, “We believe it is in the best interests of our customers, employees, and investors to terminate our agreement to merge with FanDuel and move forward as a separate company.”

FanDuel Chief Executive Officer, Nigel Eccles, said in statement to the press regarding the merger plan, “While our opinion has not changed, we have determined that it is in the best interest of our shareholders, customers, employees, and partners to terminate the merger agreement and move forward as an independent company. There is still enormous, untapped market opportunity for FanDuel, and we will continue to execute our strategy to grow our business and further expand the fantasy sports industry.”

 

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