DraftKings and FanDuel leaders discuss projected merger
Executives of the two leading daily fantasy sports operators, DraftKings and FanDuel, are considering a merger, following a year full of legal and regulatory disputes for both companies.
Last week, a dispute regarding deceitful advertising practices cost each company $6m. This recent blow has pushed the merger to become a more immediate solution to the financial difficulties which have arisen for both companies over the past year.
However, the news of this imminent merger has been met with some scepticism. As expected with any merger, allocating roles of leadership – including the position of CEO – could prove to be challenging for the two companies, who have fiercely competed in the market for a number of years.
Furthermore, US anit-trust and competition regulators will likely keep the new, united company under strict surveillance, as both FanDuel and DraftKings currently hold the top two spots in the DFS market.
The merger is still to be confirmed; however, with the growing pressure to settle their debts, a merger may be the only option for DraftKings and FanDuel.
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