|Bid||164.30 x N/A|
|Ask||164.55 x N/A|
|Day's Range||158.70 - 164.45|
|52 Week Range||54.36 - 164.45|
|Beta (5Y Monthly)||0.61|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 09, 2020|
|1y Target Est||N/A|
Flutter Entertainment (Pink: PDYPY) is making a big bet on the growth of the U.S. sports betting market.What Happened: On Thursday, Flutter announced it's increasing its ownership in FanDuel from 57.8% to 95%. The purchase by Flutter comes from Fastball Holdings, which will now own 7% of Flutter Entertainment.Flutter is paying $4.2 billion for the stake, with $2.1 billion coming from cash and the rest in the form of newly issued Flutter Entertainment shares.Boyd Gaming (NYSE: BYD) will retain its 5% stake in FanDuel.Fox Corporation (NASDAQ: FOX) is a key to the deal as they will own a stake in Flutter and will help Flutter with funding for the deal. Fox will also have the option to purchase an 18.5% stake in FanDuel at fair market value in July 2021.Why It's Important: The press release from Flutter calls the U.S. sports betting market "the most attractive sector opportunity today."Roundhill Investments CEO and Co-Founder Will Hershey told Benzinga the news itself wasn't a surprise."What is a surprise, and a positive one at that, is the valuation. The implied FanDuel valuation of $11.2 billion is a significant discount to DraftKings," Hershey said.Boyd Gaming, DraftKings Inc (NASDAQ: DKNG) and Flutter Entertainment are all held in the Roundhill Sports Betting & IGaming ETF (NYSE: BETZ).Hershey said Flutter initially invested in FanDuel in 2018 at a valuation of $1 billion."From a strategic perspective, it's now increasingly possible that Flutter may look to spin-off all or part of its stake in FanDuel onto a U.S. exchange, unlocking shareholder value," he said.Hershey said it will be interesting to see if Fox makes the investment next year, as it would surpass the threshold for qualifying as a regulated gaming operator similar to an option Comcast Corporation (NASDAQ: CMCSA) has to acquire a stake in PointsBet."If either of those options are exercised," said Hershey, "the media's commitment to the growth of sports betting will be further validated."Related Link: Sports Betting ETF Co-Founder Talks SPACs, Undervalued Foreign Exchange PlaysDraftKings Competition: Hershey said FanDuel expects 2020 net revenues of around $850 million compared to estimates of $540 to $560 million from DraftKings.Fox Business said FanDuel has 9.5 million customers betting and a 43% market share in legalized sports betting states for the third quarter. FanDuel expects to have online sports betting in 14 states and iGaming in four states by the end of 2021.Benzinga's Take: The valuation used in the deal could put pressure on DraftKings stock as the company has a market cap of over $20 billion.The ownership of FanDuel stakes by Boyd and possibly Fox could be catalysts going forward if Flutter Entertainment decides to list FanDuel as a spin-off company on a major U.S. exchange.Price Action: Shares of Flutter Entertainment closed Thursday's session up 8.56% to $97. The stock is up 50% in 2020.See more from Benzinga * Click here for options trades from Benzinga * Why Barstool, MGM Could Be Big Winners With Michigan Online Sports Betting * 7 Stocks To Watch Ahead Of Michigan Online Sports Betting Legislation(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Flutter Entertainment Plc said it’s buying Fastball Holdings LLC’s stake in FanDuel for $4.2 billion to get almost full ownership of the fast-growing U.S. bookmaker. Flutter shares rose as much as 14% to a record high.Flutter will pay $2.09 billion in cash and issue about 11.7 million new Flutter ordinary shares to Fastball under the conditional agreement, taking its stake in FanDuel to 95% from 57.8%, it said Thursday in a statement. The deal gives FanDuel an estimated enterprise value of $11.2 billion.Dublin-based Flutter, formerly known as Paddy Power, has leapfrogged competitors like GVC Holdings Plc in market value after buying Canada’s The Stars Group earlier this year.Deals have been spurred by the legalization of sports betting in the U.S. in 2018 -- the latest being U.S. casino operator Caesars Entertainment Inc.’s acquisition of Britain’s William Hill Plc.Competition is intensifying as companies such as BetMGM and Barstool Sports compete with FanDuel and its main rival DraftKings to capture surging demand.The acquisition from Fastball “leaves Flutter with 95% of its prize asset, and clears up uncertainty that has overhung the shares,” Jefferies analyst James Wheatcroft said in a note.Fox PartnershipThe Stars takeover gave Flutter ownership of Fox Bet, a Stars unit that has an exclusive license to use trademarks of Rupert Murdoch’s Fox Corp. for up to 25 years and spends money on Fox advertising.That commercial partnership brought Fox a stake of 4.99% in Stars, plus an option to acquire half of Stars’ U.S. operations. Fox now has 2.6% of Flutter’s equity, and said it will take part in the capital raising announced Thursday to maintain its stake in the Irish company.Fox has also kept options to acquire more of FanDuel and options regarding Fox Bet, Flutter Chief Executive Officer Peter Jackson said on a call with reporters.“The first person I rang to tell about this deal on a confidential basis was Lachlan Murdoch,” the CEO of Fox, Jackson said. “Fox are an incredibly important media partner.”Goldman Sachs International and Davy advised Flutter, and are managing the placing. Moelis & Co. acted as exclusive financial adviser to Fastball.(Corrects reference to Fox’s acquisition options in ninth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Flutter Entertainment (OTC: PDYPF) is one step closer to having complete ownership of fantasy sports and sports betting giant FanDuel after the sportsbook announced it was acquiring an additional 37% stake in the business, bringing its ownership position to 95%. Boyd Gaming owns the remaining 5% interest. Flutter is buying the position from FanDuel owner Fastball Holdings and will pay $2.1 billion in cash plus about 11.7 million in new Flutter stock.