Draftkings, fanduel scrap merger amid antitrust scrutiny law360. Draftkings, fanduel scrap merger plans after ftc opposition. Daily fantasy merger wont help much with legal woes law360. Recent silence on draftkings and fanduel merger may. They argue that the dfs industry, by itself, should not be.
Fanduel employees, founders sue over getting nothing in merger. Jul, 2017 draftkings and fanduel abandon proposed merger. Between them, the two companies have 95 percent of daily fantasy sports, and the ftc had called for a preliminary injunction to prevent the companies from closing. Jun 19, 2017 related story draftkings and fanduel agree to merge in effort to propel fantasy sports in a joint statement, draftkings and fanduel say that they are disappointed by the ftcs decision and. The new yorkbased daily fantasy sports company had agreed to terms for a merger with the.
Daily fantasy sports companies draftkings and fanduel announced last week that they plan to merge, but experts say though the deal, which still must. Draftkings and fanduel announced plans to merge in november, after they spent a year pouring millions of dollars into aggressive competing ad campaigns that drew the attention of regulators in. Officials at the ftc said the merger would create an illegal monopoly. Back in november 2016, draftkings and fanduel agreed to merge on a 5050 ownership basis. Fanduel creators say kkr, shamrock cheated them in merger. Ftc and two state attorneys general challenge proposed. We still know little about the logistics of the merger, or how the ftc will come down on the matter. Ftc to sue to block merger of fantasy sports sites draftkings and fanduel the commission says the deal would hurt consumers who play webbased fantasy sports games. Fanduel employees sit in the fantasy sports companys offices in new york, september 24, 2015. Feds may try to stop merger of draftkings, fanduel. Draftkings and fanduel, the two leading daily fantasy sports companies, are in advanced talks about a merger, according to multiple reports. Daily fantasy sports companies draftkings and fanduel are set to merge into one. Draftkingsfanduel merger off after antitrust lawsuit. Since then, there has been deafening silence about the mergers.
Fanduel group is a new york city based bookmaker and daily fantasy sports provider. The ftc filed its lawsuit against draftkings and fanduel in june, saying the pair are in their own league in terms of daily fantasy. In july, draftkings and fanduel abandoned a planned merger following a lawsuit by the u. Draftkings, fanduel contests granted stay in ny a judge granted attorney general eric t. Jul, 2017 draftkings and fanduel announced plans to merge in november, after they spent a year pouring millions of dollars into aggressive competing ad campaigns that drew the attention of regulators in. Originally founded in 2009, the service is the second largest dfs service in the country, behind draftkings, based on entry fees and user base in november 2016, fanduel and draftkings reached an agreement to merge. Fantasy sports company founders, former employees sue over. Nov 18, 2016 daily fantasy sports companies draftkings and fanduel are set to merge into one. Draftkings and fanduel announce merger new york post. Draftkings, fanduel accused of racketeering in new lawsuit. Bostonbased draftkings and new yorkbased fanduel agreed to merge in november as the industry they helped pioneer fell under intense. In november 2016, fanduel and draftkings reached an agreement to merge. Ftc to sue to block merger of fantasy sports sites draftkings. The ftc authorized legal action to block the merger of the two largest daily fantasy sports sites, draftkings and fanduel, alleging that the combined firm would control more than 90 percent of the u.
Jul 14, 2017 draftkings and fanduel are backing out of a plan that would have merged the two sites into a daily fantasy sports juggernaut the two companies announced their plan to merge in 2016, but a host. How and why fanduel and draftkings decided to merge forbes. The settlement in new york at least opens up the possibility that other states could leverage their truth in advertising laws to take draftkings and fanduel to task as well. To merge the two companies, reuters reports, fanduel would acquire draftkings, though no deal is certain. Draftkings fights back against lawsuit over failed fanduel. Bartlit beck files a lawsuit against kkr, shamrock capital, and. Nfl player pierre garcon files classaction lawsuit against fanduel.
Jan 25, 2017 on november 18, 2016, daily fantasy sports operators draftkings and fanduel announced their plans to merge into a single company. Ftc files lawsuit to stop the fandueldraftkings merger. Bet on fanduel and draftkings to merge to save themselves. Draftkings and fanduel announced plans to merge in november after both companies incurred massive lobbying and legal fees as new. Fantasy sports rivals draftkings, fanduel ink merger law360. Draftkings and fanduel say merger will not lead to higher. The argument on the antitrust front advanced by draftkings and fanduel is that they are a part of the larger fantasy sports market. Draftking, fanduel end merger amid federal lawsuit video. Draftkings and fanduel first announced plans to merge in. Under current us federal antitrust laws, a company is prohibited from harming competition in a given field by creating a monopoly in their respective industry. Fanduel employees sit in the fantasy sports companys offices in new york, september. An advertisement for draftkings in new york in 2015. Draftkings, fanduel cancel merger plans in face of ftc.
Draftkings and fanduel are two of the biggest players in the dfs industry in the us and agreed to merge on a 5050 ownership basis in november 2016. The companies called off the merger just days after filing briefs in response to the complaint. The sports xchange 0 a draftkings logo is displayed in new york city. The two largest daily fantasy sports sites draftkings and fanduel. The suits allege, however, that the whales are mostly draftkingsfanduel employees who devour new competitors. Jun 19, 2017 ftc to seek injunction to block draftkings, fanduel merger. Jun 19, 2017 ftc says it will file suit to block fanduel, draftkings merger. Fanduel founders and employees file lawsuit against investors who. Draftkings and fanduel agree to merge daily fantasy sports. Draftkings, fanduel scrap merger amid antitrust scrutiny. Nonetheless, the ftc filed a lawsuit aiming to block the merger last month, stating that any proposed merger would create a corporate entity with an 80% share of the dfs market and thus violate us federal antitrust laws. Ftc says it will file suit to block fanduel, draftkings merger.
They will also issue an administrative complaint alleging that the merger violates section 7 of the clayton act, which prohibits mergers and. Bostonbased draftkings and new yorkbased fanduel agreed to merge in november as the. Revising the horizontal merger guidelines in the wake of. Fanduel and draftkings have agreed to merge, but do not expect the daily fantasy sports dfs companies to close the transaction until the end of 2017. The plaintiffs allege that the private equity firms kept the valuation down to keep full ownership of the 40% stake in fanduel group. Daily fantasy sports sites draftkings and fanduel agree to merge nov.
Nov 18, 2016 fanduel and draftkings have agreed to merge, but do not expect the daily fantasy sports dfs companies to close the transaction until the end of 2017 if antitrust regulators approve it first. Officials at the ftc said the merger would create an. Originally founded in 2009, the service is the second largest dfs service in the country, behind draftkings, based on entry fees and user base. Ftc sues to block draftkingsfanduel merger deadline. Draftkings and fanduel call off merger the new york times. Jul, 2017 daily fantasysports sites fanduel and draftkings have called of their plans to merge, after the federal trade commission last month said it would attempt to block the deal on antitrust grounds.
Draftkings and fanduel the two biggest names in daily fantasy sports are currently waiting on federal regulators to approve a merger that would combine the two companies into one op. The commission also issued an administrative complaint alleging that the proposed merger violates section 7 of the clayton act and section 5. Schneidermans preliminary injuctuion to shut down the operation of the daily fantasy sports sites. After months of speculations and rumors that the deal was all but closed, we finally have confirmation that draftkings and fanduel will merge into one company. The odds against a draftkingsfanduel merger cbs news. Draftkings and fanduel reportedly in merger talks the. Fanduel and draftkings hope to be playing on the same team soon and theyre both struggling to stay off the injured list. The federal trade commission ftc, along with the attorney generals of the state of california and the district of columbia, filed a lawsuit in a federal court to temporarily stop the merger of fanduel and draftkings today. Fanduels founder is suing for his share of acquisition.
Joshua carroll, plaintiff, on behalf of a class action putative class, v. The ftc filed a lawsuit last june to block the draftkingsfanduel merger due to its perceived violations of antitrust guidelines. Fanduel and draftkings end merger plan in response to ftc opposition. The ftc is attempting to block the draftkingsfanduel merger. Online fantasysports operators draftkings and fanduel, which set aside their fierce rivalry last year and announced plans to merge, called off the tieup in the face of opposition from u. The merger constitutes an acquisition subject to section 7 of the clayton act, 15. Daily fantasy sports companies draftkings and fanduel broke off their planned merger on thursday amid an ongoing antitrust challenge. Current fanduel executives including eccless replacement as ceo, matt king are set to make millions on the merger.
Jun 14, 2016 the odds against a draftkings fanduel merger. Jul, 2017 fanduel and draftkings end merger plan in response to ftc opposition. Fanduel investors claim pe firms cut them out of merger law360. Draftkings and fanduel say merger will not lead to higher prices. Draftkings and fanduel suddenly call off planned merger following antitrust challenge the two companies had faced a lawsuit from the federal trade commission seeking to block the merger. In a 52page complaint filed tuesday in new york state court, the. Fanduel group is a new york citybased bookmaker and daily fantasy sports provider. Jan 30, 2017 is draftkingsfanduel merger threatened by antitrust laws. Jul, 2017 draftkings and fanduel, the two biggest daily fantasy sports platforms that originally announced their intention to merge, have called it quits. Jul 14, 2017 back in november 2016, draftkings and fanduel agreed to merge on a 5050 ownership basis. Fanduel and draftkings end merger plan in response to ftc. Draftkings and fanduel abandon proposed merger washington post. Ftc wants to block merger of fanduel, draftkings las. Draftkings and fanduel drop fantasy sports merger after ftc pressure reuters july, 2017 1.
On november 18, 2016, daily fantasy sports operators draftkings and fanduel announced their plans to merge into a single company. Venue in the united states district court for the southern district of florida is proper because the defendant resides in the district for purposes of venue andor a substantial part of the events giving rise to the claims at issue in this complaint occurred in this district. A core argument in the lawsuit filed by draftkings is its contention that scheniderman denied it sufficient due process under the u. The federal trade commission has authorized legal action to block the merger of the two largest daily fantasy sports sites, draftkings and fanduel, alleging that the combined firm would control more than 90 percent of the u. Joshua brustein, long and costly legal battle was a factor, draftkings.
Draftkings and fanduel abandon proposed merger the. Fanduel and draftkings on thursday abandoned their merger a day before they were scheduled to defend the deal in front of an administrative judge. Fanduel investors claim pe firms cut them out of merger. Gaining approval from federal regulators that the pending tieup is not in violation of antitrust standards in the us what is the federal trade commission looking into in dfs. Jul, 2017 the ftc filed a lawsuit last june to block the draftkings fanduel merger due to its perceived violations of antitrust guidelines. Draftkings and fanduel are backing out of a plan that would have merged the two sites into a daily fantasy sports juggernaut the two companies announced their plan to merge in 2016, but a host. Jul, 2017 daily fantasy sports companies draftkings and fanduel broke off their planned merger on thursday amid an ongoing antitrust challenge from the u. Draftkings and fanduels announcement in november that they would merge to form a true dfs behemoth put an end to months of will. Jan 18, 2016 according to the lawsuits, draftkings and fanduel tried to recruit as many fish as possible to fund its prize pools and to keep its most active users known as whales happy. Related story draftkings and fanduel agree to merge in effort to propel fantasy sports in a joint statement, draftkings and fanduel say that they are. Shortly after paddy power and fanduel started discussing a deal. Ftc and two state attorneys general challenge proposed merger. Daily fantasy giants draftkings and fanduel have decided not to. Fanduel, draftkings terminate merger amid ftc antitrust.
Fanduel, draftkings terminate merger amid ftc antitrust challenge. Draftkings and fanduel are holding talks about a merger, according to sources who spoke to bloomberg this week. Draftkings and fanduel end merger talks under ftc pressure. Draftkings and fanduel end merger talks under ftc pressure by. Fanduel and draftkings scrap merger plan new york post. Federal trade commission filed a lawsuit in june aimed at stopping the merger, arguing that the combined. Daily fantasysports sites fanduel and draftkings have called of their plans to merge, after the federal trade commission last month said it would attempt to block the deal on antitrust grounds. Draftkingsfanduel merger scrapped following federal ruling. Nov 30, 2017 in the initial lawsuit, cra accused draftkings and its new york rival, fanduel inc. Is draftkingsfanduel merger threatened by antitrust laws. Jul, 2017 draftkings and fanduel end merger talks under ftc pressure by.
According to the lawsuits, draftkings and fanduel tried to recruit as many fish as possible to fund its prize pools and to keep its most active users known as whales happy. Draftkings and fanduel, the online fantasy sports companies at the center of a growing controversy over employees big winnings handicapping sports events, have been accused of racketeering in a. Draftkings and fanduel are reportedly in talks to merge as protracted fights over the legality of the daily fantasy sports games they provide take. For additional information, read the complaint here, coverage in the wall. Draftkings and fanduel drop fantasy sports merger after. Ftc to seek injunction to block draftkings, fanduel merger. Nov 19, 2016 the daily fantasy sports companies draftkings and fanduel have agreed to merge after a turbulent year in which both of their values plummeted as several attorneys general questioned the legality. The complaint also notes that paddy power saw its market capitalization. Daily fantasy sites draftkings, fanduel announce merger. Ftc to sue to block merger of fantasy sports sites. Fanduel, which was founded in scotland in 2009, is the second largest. Fanduel founders and early investors said in a new suit that two private equity firms cheated them out of money in the paddy power betfair merger.
Bartlit beck files a lawsuit against kkr, shamrock capital, and former. Draftkingsfanduel merger off after antitrust lawsuit sports illustrated. Draftkings and fanduel, the nations two dominant daily fantasy sports websites, announced friday that they will be joining forces. Draftkings and fanduel will no longer merge techcrunch. Daily fantasy sports operators draftkings, fanduel to merge. A consolidated class action lawsuit against draftkings and fanduel is still pending. Nfl player pierre garcon files classaction lawsuit. Fanduel decided to merge with draftkings last november, because we believed that this deal would have increased investment in growth and. Joshua brustein, long and costly legal battle was a factor, draftkings ceo says. Bostonbased draftkings and new yorkbased fanduel agreed to merge in november as the industry they helped pioneer fell under intense regulatory scrutiny. Jun 19, 2017 ftc to block fanduel draftkings merger. Jun, 2016 draftkings, fanduel contests granted stay in ny a judge granted attorney general eric t.
560 779 233 1078 226 123 1334 812 725 15 81 1112 1279 1327 380 880 173 829 93 100 486 1195 266 1087 293 1285 1512 583 1503 764 533 1320 985 74 1420 1101 717 1238 1221 133 900 1137 420 1362