DraftKings confirms merger with FanDuel
DraftKings has today (Friday) confirmed a deal to merge with rival daily fantasy sports (DFS) operator FanDuel.
The merger has been on the cards for some time, with the two brands now set formally to join forces at some point next year in a move they say will allow them to “better serve consumers”.
Although financial terms of the deal were not disclosed, the two operators said in a joint statement that the merger will lead to operational efficiencies and cost savings, which will in turn enable the brands to focus more on developing new products and features.
The combined company also plans to invest in strategic partnerships across the professional sports industry, with both brands saying that media, advertising and other partners will benefit from access to more products and customers as a result of the merger.
As previously reported, Jason Robins, chief executive of DraftKings, will take on the same role within the combined company, with FanDuel chief executive Nigel Eccles to serve as chairman of the board, which itself will feature three directors from each operator, as well as one independent director.
“We have always been passionate about providing the best possible experience for our customers and this merger will help advance our goal of building a transformational global sports entertainment platform,” Robins said.
“Joining forces will allow us to truly realise the potential of our vision, and as a combined company we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately.”
FanDuel’s Eccles added: “Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry.
“While both companies have accomplished much already, this transaction will create a business that can offer a greater variety of offerings, appealing to new users, including the tens of millions of season-long fantasy players that haven't yet tried our products.”