Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Flutter Entertainment Ups Stake in FanDuel to 95%

By Rich Duprey - Dec 3, 2020 at 10:47AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company has quickly become the world's biggest sportsbook.

Flutter Entertainment (OTC: PDYPF) is one step closer to having complete ownership of fantasy sports and sports betting giant FanDuel after the sportsbook announced it was acquiring an additional 37% stake in the business, bringing its ownership position to 95%. Boyd Gaming owns the remaining 5% interest.

Flutter is buying the position from FanDuel owner Fastball Holdings and will pay $2.1 billion in cash plus about 11.7 million in new Flutter stock. The acquisition will lift its ownership stake from 57.8%.

Sports odds leaderboard

Image source: Getty Images.

A big bet on growth

Flutter is the world's largest bookmaker and owns Paddy Power, BetFair, FanDuel, and The Stars Group, owner of the world's leading poker platform, PokerStars.

It also owns Fox Bet, which it acquired from Fox ( FOX 1.91% )( FOXA 2.01% ), which in return acquired a 2.6% stake in Flutter. The sportsbook will be offering Fox a chance to acquire an 18.5% stake in FanDuel in July 2021 at fair market value.

"The first person I rang to tell about this deal on a confidential basis was [Fox CEO] Lachlan Murdoch," Flutter CEO Peter Jackson said on a conference call with reporters about the FanDuel deal this morning, according to Bloomberg. "Fox are an incredibly important media partner."

Flutter acquired its original stake in FanDuel in 2018 after the U.S. Supreme Court ruled that keeping sports betting illegal was unconstitutional. FanDuel has quickly become the largest sportsbook in the U.S., especially in the country's biggest market, New Jersey, where it routinely battles rival DraftKings.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Boyd Gaming Corporation Stock Quote
Boyd Gaming Corporation
$59.68 (-0.53%) $0.32
Fox Corporation Stock Quote
Fox Corporation
$36.04 (2.01%) $0.71
Fox Corporation Stock Quote
Fox Corporation
$33.54 (1.91%) $0.63
DraftKings Inc. Stock Quote
DraftKings Inc.
$28.37 (-9.36%) $-2.93

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.