|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||103.69 - 104.66|
|52 Week Range||46.70 - 119.41|
|Beta (5Y Monthly)||0.86|
|PE Ratio (TTM)||535.35|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 13, 2020|
|1y Target Est||N/A|
Rupert Murdoch is primed to impose an advertising blackout of America’s most popular sports betting brand if its British owner refuses to back down in a bitter legal row. FanDuel, which is owned by FTSE 100 bookmaker Flutter Entertainment, risks being taken off the air by FoxSports, America’s second-biggest sports television network, The Sunday Telegraph has learnt. The threat comes at a time when advertising is playing a key role in allowing operators to grab a toehold in what is expected to be the world’s biggest regulated market. If followed through, it would mark a significant escalation of a row that erupted last week between Fox Corporation and Flutter. Fox last week launched legal action in New York against Flutter, the operator behind Sky Bet, Paddy Power and Betfair, in a row over FanDuel, which has a 40pc share of the US market. Fox has an option to buy an 18.6pc stake in FanDuel in July. It claims it is entitled to pay the same price that Flutter paid in December, when the London-listed operator acquired the shares of FanDuel that it did not own at the time. But Flutter claims it must pay the “fair market value” in July and has alleged that Fox is trying to secure a “windfall” by buying the shares at a lower price. One insider said that Fox’s preference was to resolve the dispute. However, if it could not be resolved, Fox would focus on advertising its own brand, FoxBet, instead of promoting FanDuel. Sources close to Flutter claimed that Fox had realised it has backed the wrong horse. Fox and Flutter declined to comment.
Many details still need to be ironed out, but it looks like mobile sports betting will become a reality.
A FanDuel initial public offering in the U.S. could be delayed by a legal battle between two owners of the sports betting company. What Happened: A lawsuit has been filed by Fox Corporation (NASDAQ: FOX) (NASDAQ: FOXA) against Flutter Entertainment (Pink: PDYPY). “Fox Corporation has filed suit against Flutter to enforce its rights to acquire an 18.6% ownership interest in FanDuel Group, an American sports betting brand, for the same price that Flutter paid for that interest in December 2020,” Fox said in a Tuesday statement. Related Link: Sports Betting ETF Co-Founder Talks SPACs, Undervalued Foreign Exchange Plays Why It’s Important: As part of its acquisition of The Stars Group, Flutter Entertainment and Fox reached a deal over the Fox Bet joint venture between TSG and Fox. Fox gave up ownership of Fox Bet to Flutter and received options to acquire 50% of Fox Bet as well as 18.5% of FanDuel. Flutter Entertainment upped its stake in FanDuel from 57.8% to 95% in December. The company acquired a stake from Fastball Holdings for $4.2 billion. Fox's lawsuit calls for the media company to buy the stake in FanDuel based on the $11.2-billion valuation set in December. FanDuel could be valued at $30 billion on the open market, according to LegalSportsReport. Fox could also have leverage in a legal battle, with sources telling LegalSportsReport that Fox can keep The Stars Group assets like FoxBet and Poker Stars in a potential FanDuel IPO. Flutter Entertainment is exploring an IPO for Fanduel, which would bring a pure play sports betting company public that could compete with DraftKings Inc (NASDAQ: DKNG) given its strong brand name, dominant market share and large customer pool. “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,” Roundhill Investments CEO Will Hershey told Benzinga in December. Roundhill runs the Roundhill Sports Betting & iGaming ETF (NYSE: BETZ). Flutter initially invested in FanDuel in 2018 at a valuation of $1 billion, according to Hershey. “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.” Boyd Gaming (NYSE: BYD) owns a 5% stake in FanDuel. FOXA, PDYPY Price Action: Class A Fox shares were up 0.43% at $37.21 at last check Wednesday. Flutter shares were down 1.19% at $106.71. See more from BenzingaClick here for options trades from BenzingaGary Vaynerchuk To Talk SPACs, Sports And NFTs On Benzinga's 'SPACs Attack'New York Could Soon Legalize Sports Betting: A Look At Potential Winners And Losers© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.