Flutter Entertainment PLC (LSE:FLTR) has claimed victory in a long running dispute over Fox Corporation’s plans to take a stake in US gaming company FanDuel, in which Flutter has a majority shareholding.
The betting company, which owns Paddy Power and Betfair, said a US ruling had valued FanDuel at US$20bn as at December 2020 using fair market value, a price which is subject to a 5% increase up until Fox exercises any option to buy a holding in FanDuel.
As of today, this equates to a valuation for FanDuel of US$22bn and a cost of US$4.1bn for Fox to acquire an 18.6% stake, Flutter said in a statement.
Peter Jackson, Flutter chief executive, commented: "Today's ruling vindicates the confidence we had in our position on this matter and provides certainty on what it would cost Fox to buy into this business, should they wish to do so.
“FanDuel is winning in the US market and the clear number one operator, a position driven by its exceptional market leading product and efficiency in acquiring customers at scale.
“The team remain focused on maintaining our leadership position and we look forward to updating the market on our progress at our US capital markets day on 16th November."
But Rupert Murdoch’s Fox also claimed victory in the dispute.
Fox said it was “pleased with the fair and favourable outcome of the Flutter arbitration. Flutter cannot pursue an IPO [stock market float] for FanDuel without Fox’s consent or approval from the arbitrator.”
Flutter hit back in a statement: "We can also confirm on-the-record that Fox does not have a block on any potential IPO of FanDuel, should one occur."
A separate legal claim on float veto is due to conclude early next year.