DraftKings and FanDuel will reportedly merge into super company
DraftKings CEO Jason Robins is expected to lead the new venture.
(LUCAS JACKSON/REUTERS)
AMARA GRAUTSKI
NEW YORK DAILY NEWS
Monday, October 31, 2016, 1:54 PM
DraftKings and FanDuel, two daily fantasy sports giants that control at least 90% of the market, are reportedly set to merge and form a super company after discussing the possibility for months.
DraftKings co-founder Jason Robins is expected to be chief executive officer,according to Bloomberg, which reported in June that the two companies were discussing a potential merger. There's still a possibility, however, that an outside executive could be put in charge, Bloomberg said.
FanDuel co-founder Nigel Eccles will reportedly be chairman of the board, which will be comprised of an even amount of members from DraftKings and FanDuel.
DraftKings released a statement Monday afternoon: “As we have stated previously, 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.”
FanDuel, DraftKings, other daily fantasy sports legalized in N.Y.
FanDuel did not comment on the story.
The rival companies, which have been competing against one another the last few years, would now have a virtual monopoly on the DFS industry.
It makes sense for DraftKings and FanDuel, which have reportedly struggled financially in 2016, to combine resources rather than have each company spend on advertising while competing for the same customers.
DraftKings and FanDuel have spent time and money this year battling legal issues; they were forced to shut down in New York after Attorney General Eric Schneiderman sued both for violating the state’s constitutional ban on certain types of gambling, but they began operating again in August.
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Last week DraftKings and FanDuel took another hit, each agreeing to pay $6 million to settle lawsuits with Schneiderman over deceptive fantasy sports advertisements.
FanDuel, headquartered in New York, was founded in 2009, and DraftKings, based in Boston, began in 2012.
DraftKings CEO Jason Robins is expected to lead the new venture.
(LUCAS JACKSON/REUTERS)
AMARA GRAUTSKI
NEW YORK DAILY NEWS
Monday, October 31, 2016, 1:54 PM
DraftKings and FanDuel, two daily fantasy sports giants that control at least 90% of the market, are reportedly set to merge and form a super company after discussing the possibility for months.
DraftKings co-founder Jason Robins is expected to be chief executive officer,according to Bloomberg, which reported in June that the two companies were discussing a potential merger. There's still a possibility, however, that an outside executive could be put in charge, Bloomberg said.
FanDuel co-founder Nigel Eccles will reportedly be chairman of the board, which will be comprised of an even amount of members from DraftKings and FanDuel.
DraftKings released a statement Monday afternoon: “As we have stated previously, 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.”
FanDuel, DraftKings, other daily fantasy sports legalized in N.Y.
FanDuel did not comment on the story.
The rival companies, which have been competing against one another the last few years, would now have a virtual monopoly on the DFS industry.
It makes sense for DraftKings and FanDuel, which have reportedly struggled financially in 2016, to combine resources rather than have each company spend on advertising while competing for the same customers.
DraftKings and FanDuel have spent time and money this year battling legal issues; they were forced to shut down in New York after Attorney General Eric Schneiderman sued both for violating the state’s constitutional ban on certain types of gambling, but they began operating again in August.
Follow the Daily News Sports on Facebook. "Like" us here.
Last week DraftKings and FanDuel took another hit, each agreeing to pay $6 million to settle lawsuits with Schneiderman over deceptive fantasy sports advertisements.
FanDuel, headquartered in New York, was founded in 2009, and DraftKings, based in Boston, began in 2012.
