After months of speculation and denials about a possible merger, the two biggest names in daily fantasy sports — DraftKings and FanDuel — have finally confirmed that they are indeed getting hitched.
DraftKings announced the merger this morning, saying it expects the deal to close next year. Neither company is publicly traded, and no financial terms of the deal were disclosed.
The two sites will continue to operate under their current brands for the time-being, with no timeline given for rebranding of either DraftKings or FanDuel (or both). The deal will need regulatory approval, as it would consolidate around 90% of the daily fantasy market under one umbrella.
In an attempt to quell that concern, a joint statement put out by the merger partners claims that the two sites won’t be taking advantage of the lack of competition by raising prices on customers.
“We intend to keep our commission fees and structure competitive in order to offer consumers a compelling experience,” reads the statement. “The merger will not affect our obvious incentive to continue growing the DFS space through guaranteed prize pools and attractive commission levels… We know that there are other platforms players could go on if we tried to raise commissions. This remains equally true whether the companies remain independent or combine.”
As reported last month, DraftKings co-founder and CEO Jason Robins will take the reins of the merged companies, while FanDuel CEO Nigel Eccles will become Chairman of the Board. Rather than shift headquarters to either Boston or New York City, the merged company will maintain HQs in both cities.
by Chris Morran via Consumerist
No comments:
Post a Comment