Fox to Acquire 18.6% Stake in FanDuel
Fox CROplans to exercise the company’s option to purchase an 18.6% stake in FanDuel, valued at US$4.3 billion.
Fox's Chief Executive, Lachlan Murdoch, plans to exercise the company’s option to purchase an 18.6% stake in the betting firm FanDuel, with the media giant aiming for a deal valued at US$4.3 billion. This opportunity arose from Fox's 2020 acquisition of the option during FanDuel’s takeover of The Stars Group (TSG), with whom Fox had previously launched the now-defunct Fox Bet.
The option, which was converted into FanDuel shares, allows Fox to secure the stake at a price far below the estimated US$35 billion FanDuel is currently valued at, with a market value buy-in costing US$6.8 billion. Despite hoping for an even lower price, Fox sees the current offer as an opportunity to minimize potential outlay.
The option is valid until 2030, but Fox is moving quickly to finalize the deal. The company is working with state legislators to secure the necessary gambling licenses in the US.
There has been some dispute over the final price, with an arbitrator ruling in 2022 that Fox could make the purchase for US$3.7 billion, based on a US$20 billion valuation. The price increases by five per cent annually.
This comes just weeks after FanDuel announced the launch of its Trusted Voices Responsible Gambling Initiative.
