ï»¿DraftKings, FanDuel Jettison Merger Plans, Back Off From FTC Challenge
Joint rulers of the fantasy that is daily (DFS) market DraftKings and FanDuel have 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 offer’s off: DraftKing’s Jason Robins (left) and FanDuel’s Nigel Eccles announced on quick hit free slots Thursday that their companies would be going it alone, calling off a potential FTC fight in the grounds of antitrust violations. (Image: Reuters)
The 2 companies announced the termination of the tie-up on Thursday, just days after that 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 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 would have dramatically slice the amount of legal and lobbying costs the two businesses invest fighting for legal DFS in states across the united states. It would also take away the costs associated with trying to out-market the other person.
The failure of the deal leaves both in precarious financial positions, as neither has ever been profitable. Documents related to the merger leaked final thirty days revealed that DraftKings has lost a stagge […]