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Merger 'temporarily halted'

FanDuel, Draftkings deal held up by judge

Nigel Eccles, CEO of Fanduel

A merger between sport fantasy companies DraftKings and FanDuel has been held up by a US federal judge.

The temporary halt follows the aim of the Federal Trade Commission, California and the District of Columbia to stop the merger because the combined company would control more than 90% of the US market for paid daily fantasy sports contests.

Judge Ketanji Brown Jackson of the US District Court of the District of Columbia has now approved a temporary restraining order agreed by the FTC and the two companies.
The two companies agreed the merge last November in a move that would cut their legal bills.

FanDuel had no comment on the filing but reiterated its comment from earlier in the week that the companies were considering legal options regarding the FTC complaint.

The companies cut advertising spend significantly last year and said the combined company could again expand spending on advertising and customer acquisition.

 

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