Joint rulers for the daily fantasy activities (DFS) market DraftKings and FanDuel have walked away from a proposed merger of equals, less than the usual month following the Federal Trade Commission (FTC) moved to block the deal 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 businesses would be going it alone, calling off a possible FTC fight in the grounds of antitrust violations. (Image: Reuters)
The two companies announced the termination of the tie-up on Thursday, simply days after they’d each filed legal briefs to a district that is federal, vigorously defending the merger.
But with both companies already fighting legal actions on several fronts, it looked like another expensive and possibly condemned battle that is legal ahead. A source told ESPN that taking on the FTC would cost some $ likely12 to $15 million.
Ironically, consolidation could have dramatically slice the amount of appropriate and costs that are lobbying two organizations invest fighting for legal DFS in states across the united states. It might additionally remove 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 final month revealed that DraftKings Les videre