Flutter Acquires Full Control of US-Based FanDuel in £1.3bn Deal
Flutter has taken a bold step in the US betting market by buying the last 5% of FanDuel from Boyd for $1.76 billion (£1.3 billion). This deal gives Flutter full ownership of FanDuel, valuing the company at $31 billion (£22.9 billion), and it promises annual savings of $65 million (£48 million) starting July 1st.
The move, set to close this quarter pending regulatory approval, also extends FanDuel’s partnership with Boyd Gaming until 2038, boosting Flutter’s shares by 0.5%.
This acquisition is big news for sports betting fans and investors alike. Flutter, already a giant with brands like Paddy Power, now controls one of America’s top betting platforms. We’ll break down what this means, why it matters, and what’s next for Flutter and FanDuel in this article.
Background of Flutter and FanDuel
Flutter owns big-name betting brands like Paddy Power and Betfair. Back in 2018, it joined forces with FanDuel, grabbing a majority stake to jump into the booming US market. FanDuel, a leader in sports betting and daily fantasy sports, has built a huge following across America.
That partnership paid off. FanDuel’s success made it a cornerstone of Flutter’s US strategy. Now, owning 100% of FanDuel marks a new chapter for Flutter.
What the Acquisition Involves
Flutter shelled out $1.76 billion (or £1.3 billion) to Boyd to buy the last 5% of FanDuel. This purchase values FanDuel at $31 billion (£22.9 billion), showing its massive growth. Starting July 1st, Flutter expects to save $65 million (£48 million) each year.
The deal needs regulatory approval and should finalize this quarter. Full ownership lets Flutter call all the shots for FanDuel. It’s a smart move to streamline operations.
How This Affects the Betting Market
The market likes this deal. Flutter’s shares rose 0.5% right after the announcement. Investors see this as a sign of strength for Flutter in the US.
FanDuel’s $31 billion valuation could shake up the industry. Rivals might feel pressure to step up their game as Flutter tightens its grip on the US betting scene.
Partnership with Boyd Gaming
FanDuel’s deal with Boyd Gaming now runs through 2038. Boyd, a major casino operator in Nevada, brings valuable experience to the table. This partnership helps FanDuel grow its reach.
For Flutter, this tie-up means stability. It can count on Boyd’s support for nearly two decades. That’s a solid foundation for FanDuel’s future.
What’s Next for Flutter and FanDuel
Flutter now has full control of FanDuel at the perfect time. The US betting market is booming as more states allow sports gambling. FanDuel’s strong brand gives Flutter an edge.
Expect growth. Flutter’s can invest the $65 million in savings into new ideas, better apps, or more marketing. The future looks bright for both.
Growth Opportunities
The US market offers big potential. More states are opening up to betting each year. Flutter’s and FanDuel can grab a bigger share with smart moves.
They might roll out new features or expand into new areas. Flutter’s experience in Europe could guide FanDuel’s next steps. Fans will benefit from the results.
Competition in the US
The betting field is crowded. Companies like DraftKings and Bet365 are tough rivals. Flutter’s full ownership of FanDuel strengthens its position.
FanDuel’s loyal users and Flutter’s resources make a strong combo. They’re ready to compete and win. Watch this space.
Key Details at a Glance
Here’s a quick look at the acquisition:
- Purchase Price: $1.76 billion (£1.3 billion)
- Ownership: Flutter now holds 100% of FanDuel
- Valuation: FanDuel is worth $31 billion (£22.9 billion)
- Savings: $65 million (£48 million) annually from July 1st
- Partnership: Extended with Boyd Gaming until 2038
This table sums up the essentials. It’s a big deal with big numbers.
Final Thoughts
Flutter’s acquisition of FanDuel is a game-changer. Flutter spent $1.76 billion (£1.3 billion) to fully own FanDuel, which is now worth $31 billion (£22.9 billion). The savings and Boyd partnership set Flutter’s up for success.
This move positions Flutter as a leader in US betting. It’s an exciting time for the company and its fans. We’ll see more wins ahead.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.