The owners of FanDuel and PokerStars have struck a $12 billion deal to create the world's biggest online betting group
Reuters / Steve Marcus
- The owners of FanDuel and PokerStars have struck a $12 billion deal to create the world's biggest online betting group.
- Flutter and The Stars Group, which generated combined revenues of $4.7 billion last year, plan to offer gambling products such as online sports betting, fantasy sports, and online poker.
- The pair expect the merger to generate about $170 million in pre-tax cost savings, and boost Flutter's underlying earnings per share by 50% the year after the deal closes.
- Watch Flutter and The Stars Group trade live.
The owners of FanDuel and PokerStars have struck a $12 billion deal to create the world's biggest online betting group.Flutter and The Stars Group have agreed an all-share deal to bring together their brands such as Paddy Power, Betfair, Full Tilt, and Sky Bet. They plan to offer a broad portfolio of gambling products including online sports betting, fantasy sports, online poker, horse racing, free-to-play and casino games.Advertisement
Flutter and Stars - headquartered in Ireland and Canada respectively - racked up a combined $4.7 billion in revenue last year. Together, they boast around 4 million active users across more than 100 countries.
The two companies expect the merger to generate around $170 million in annual, pre-tax cost savings, and open up cross-selling opportunities. Flutter, which will own 55% of the combined group, expects the tie-up to boost its underlying earnings per share by 50% the year after the deal closes. It also anticipates a six-fold increase in its international sales.The proposed merger gives Fox Sports, which partnered with Stars in May to provide sports betting in the US, the right to acquire an 18.5% stake in FanDuel in 2021. The option is an incentive for Fox to use its national media platform to grow the fantasy sports business, which Paddy Power bought for $465 million last year.
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