{"id":1116,"date":"2024-09-12T02:47:28","date_gmt":"2024-09-12T02:47:28","guid":{"rendered":"https:\/\/extraniceshirts.org\/?p=1116"},"modified":"2024-10-01T14:43:44","modified_gmt":"2024-10-01T14:43:44","slug":"fox-proceeding-with-plans-to-take-fanduel-stake-at-2-2b-discount","status":"publish","type":"post","link":"https:\/\/extraniceshirts.org\/index.php\/2024\/09\/12\/fox-proceeding-with-plans-to-take-fanduel-stake-at-2-2b-discount\/","title":{"rendered":"Fox Proceeding with Plans to Take FanDuel Stake at $2.2B Discount"},"content":{"rendered":"

Fox Corp. (NASDAQ: FOX) could be preparing to take an 18.6% stake in Flutter Entertainment\u2019s (NYSE: FLUT) FanDuel, and the media giant could do so at a significant discount to the sportsbook operator\u2019s market value.<\/p>\n

\"Fox
Fox Corp. CEO Lachlan Murdoch says the company is preparing to take an 18.6% stake in FanDuel. (Image: CNN<\/em>)<\/figcaption><\/figure>\n

At the Goldman Sachs Communacopia and Technology Conference, Fox CEO Lachlan Murdoch said the media company is proceeding with plans to take an 18.6% interest in FanDuel, the rights to which were acquired in 2020 when Flutter doled out $12.2 billion for<\/a> The Stars Group (TSG). Fox sold Sky Bet to TSG in 2018 for $4.7 billion, taking an equity stake in the buyer.<\/p>\n

Murdoch told attendees at the conference that Fox values FanDuel at $35 billion, meaning 18.6% is worth $6.5 billion. Assuming he\u2019s correct and FanDuel is worth $35 billion, that implies the gaming company is worth $17.22 billion more than DraftKings (NASDAQ: DKNG),<\/a> its most direct competitor. At the close of US markets on Wednesday, DraftKings sported a market capitalization of $17.78 billion.<\/p>\n

Fox Won\u2019t Leave $2 Billion on the Table, Says Murdoch<\/h2>\n

That $6.5 billion figure is well in excess of the $4.3 billion Fox previously estimated it would need to pay to exercise its rights to acquire 18.6% of FanDuel. To buy that portion of FanDuel, Fox must be a licensed sportsbook operator in the states in which FanDuel does business. Murdoch mentioned at the Goldman Sachs conference that the company is working to address that issue.<\/p>\n

\n

We\u2019re not going to leave $2 billion on the table,\u201d he said.<\/p>\n<\/blockquote>\n

It\u2019s clear FanDuel has appreciated in value. Following a legal spat in 2022 between Flutter and Fox, the latter agreed to buy that 18.6% of FanDuel for $3.72 billion with a 5% annual escalator<\/a>, meaning that for each year the option wasn\u2019t exercised, the price would go up 5%.<\/p>\n

\u201cFOX has a 10-year call option that expires in December 2030 to acquire 18.6% of FanDuel for $3.72 billion, with a 5% annual escalator,\u201d according to a November 2022 statement issued by the media firm. \u201cFOX has no obligation to commit capital towards this opportunity unless and until it exercises the option.\u201d<\/p>\n

Murdoch said Fox has already initiated the process of procuring state gaming permits.<\/strong><\/p>\n

\u201cWe\u2019ve begun the process with state regulators,\u201d Murdoch said. \u201cTo fully monetize the option, we need to be licensed as a gaming operator, even with only with only 18.6% and so we\u2019ve started that process with state regulators to begin the gaming licensing approvals.\u201d<\/p>\n

Where\u2019s Fox Going to Come up with $4.3 Billion?<\/h2>\n

Murdoch didn\u2019t get into specifics of how Fox would come up with the $4.3 billion needed to activate its FanDuel stake. Coincidentally, the media entity had $4.31 billion in cash and cash equivalents at the end of fiscal 2024.<\/p>\n

\n

Murdoch told attendees at the Goldman conference that Fox would entertain mergers and acquisitions — possibly multiple deals — to bolster its news and sports divisions. Such transactions would require capital.<\/p>\n<\/div>\n

He didn\u2019t mention the possibility of selling debt to fund acquisitions or the purchase of the FanDuel interest.<\/p>\n

The post Fox Proceeding with Plans to Take FanDuel Stake at $2.2B Discount<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fox Corp. (NASDAQ: FOX) could be preparing to take an 18.6% stake in Flutter Entertainment\u2019s (NYSE: FLUT) FanDuel, and the media giant could…<\/p>\n","protected":false},"author":1,"featured_media":1118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1116"}],"collection":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/comments?post=1116"}],"version-history":[{"count":2,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1116\/revisions"}],"predecessor-version":[{"id":1119,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/posts\/1116\/revisions\/1119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/media\/1118"}],"wp:attachment":[{"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/media?parent=1116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/categories?post=1116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/extraniceshirts.org\/index.php\/wp-json\/wp\/v2\/tags?post=1116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}