DraftKings and FanDuel, two of the biggest operators in the daily fantasy sports sector, are closing in on sealing an “imminent” merger, US sports broadcaster ESPN has reported.
The deal could be announced as early as this week, the report added, citing multiple sources.
Last week the companies sealed separate financial settlements with the New York Attorney General’s office over advertising disputes, clearing a major obstacle in merger talks, the broadcaster added.
“As we have stated previously, a potential combination would be interesting to consider,” a DraftKings spokesperson said. “However, as a matter of policy, we don’t comment on rumours or speculation, and there can be no assurances at this time that any discussion about a combination would result in an agreement or merger.”
There are still a number of outstanding matters that need to be resolved, though, including the name of the new company, the identity of the chief executive and the location of its headquarters. DraftKings is based in Boston, while FanDuel has offices in New York and also Edinburgh following an expansion into Europe.
Talks over a merger have reportedly been progressing since January, although news of the discussions did not emerge until June.
source : www.igamingbusiness.com