Media, advertising and other partners are expected to benefit from access to more products and customers as a result of DraftKings and FanDuel’s diverse user base and league relationships, as well as increased investment in advertising.
Together, the combined entity aims to accelerate growth of fantasy sports.
Jason Robins, CEO of DraftKings said: “We have always been passionate about providing the best possible experience for our customers and this merger will help advance our goal of building a transformational global sports entertainment platform.
“Joining forces will allow us to truly realise the potential of our vision, and as a combined company we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately.”
Currently, there are 228 million fans of major sports in the US and 57 million fantasy players.
Nigel Eccles, CEO and co-founder of FanDuel, said: “Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry.
“While both companies have accomplished much already, this transaction will create a business that can offer a greater variety of offerings, appealing to new users, including the tens of millions of season-long fantasy players that haven’t yet tried our products.”
It was created by Northern Irishman Nigel Eccles, his Forfar-born wife Lesley, Tom Griffiths, Rob Jones, and Chris Stafford. It has other offices in Los Angeles, Orlando and Glasgow.
FanDuel has raised funding from KKR, Google Capital, Time Warner/Turner Sports, Shamrock Capital, NBC Sports Ventures, Comcast Ventures, Pentech Ventures, Piton Capital and Bullpen Capital.
Shepherd and Wedderburn and Wilson Sonsini Goodrich & Rosati acted for FanDuel. The Shepherd and Wedderburn transaction team included UK corporate lawyers Stephen Trombala, John Morrison, Tom Swan, Eilidh Gillanders and Claire Busby, with UK tax input from Stephen Miller and Douglas Sinclair and UK share incentives input from Rodger Cairns and Gavin Charlton.
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