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DraftKings/FanDuel Merger Talks Heat Up

Just four months after Daily Fantasy Sport websites DraftKings and FanDuel denied rumors that the two companies were attempting to merge, “people familiar with the situation” are once again speaking of a possible  espousal between the Fantasy Sports industry’s two largest players.

Sources stemming from Bloomberg say that DraftKings co-founder Jason Robins has already been selected to lead up the conglomerate if a merger were to come about. FanDuel’s co-founder, Nigel Eccles, however, would not be forgotten,  as he would stay on as chairman of the board.

In the past few years, both companies have done well for themselves, scoring lucrative partnerships with professional sports leagues and broadcasters alike; raising a ton of revenue and popularity for themselves. This success has made DraftKings and FanDuel a household name, but has also raised numerous questions upon the the legality of either of these companies.

This sudden success has raised revenue for both, but has also brought in a ton of unwanted attention as well. Being so popular, and under such a microscope, the public has began to question the legality of daily fantasy sports and reports of employees making significant amounts of money playing at competing sites have surfaced and have had skeptics speaking out and wanting more.

The two companies offer the same product to the same target audiences, so it would not be a stretch to see why the two sides would want to come together, combine resources, and split advertising costs (which we all know there is more than enough of).

 

Though nothing is concrete as of yet, it seems as if those directly reporting on the situation feel confident that a deal can be made sooner rather than later. As The Consumerist reported on October 31, 2016:

“What’s interesting is the difference in the non-comments from June and the ones we received today. In both instances, FanDuel said it wasn’t commenting, but in June the company said it was ‘not commenting on this speculation,’ while the word ‘speculation’ is notably absent from the one-sentence email we received this afternoon.”

Similarly, DraftKings has also modified its (non)statement from earlier in the year. “These rumors have existed for as long as both companies have been in operation. We don’t comment on speculation,” reported the company this past June.

Now, the company states that “a potential combination would be interesting to consider. However, as a matter of policy, we don’t comment on rumors or speculation, and there can be no assurances at this time that any discussion about a combination would result in an agreement or merger.”

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