Flutter Entertainment has had the value of its US business Fanduel franked by the arbitration win over Fox Business, according to analysts.
The Paddy Power and Betfair owner also has a majority stake in US me-too Fanduel, which was valued in the arbitration hearing at US$22bn.
If Fox wants to exercise its option to acquire18.6%, that means it will have to pay US$4.1bn, rising at 5% a year.
Peel Hunt said its valuation of Flutter included a value of US$19bn for FanDuel and the ruling removes the possibility of value ‘leaking’ to Fox.
Flutter will issue a trading update on Wednesday and the broker expects another strong performance for FanDuel with potential upside for recently acquired Sisal in Italy and the return to year-on-year growth in the fourth quarter of 2022.
Buy with a 16,000p target price, suggests Peel Hunt.
Shares rose 2.8% to 11,780p.