{"id":330382,"date":"2024-09-11T21:47:28","date_gmt":"2024-09-12T02:47:28","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=330382"},"modified":"2024-09-12T10:31:08","modified_gmt":"2024-09-12T15:31:08","slug":"fox-plans-to-take-fanduel-stake-at-2-2-billion-discount","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-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

We\u2019re not going to leave $2 billion on the table,\u201d he said.<\/p><\/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","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 do so at a significant discount to the sportsbook operator\u2019s market value. At the Goldman Sachs Communacopia and Technology Conference, Fox CEO Lachlan Murdoch said the media company is proceeding with plans […]<\/p>\n","protected":false},"author":46,"featured_media":226007,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,32093,1074],"tags":[81903,81966,80968],"acf":[],"yoast_head":"\nFox Plans to Take FanDuel Stake at $2.2 Billion Discount<\/title>\n<meta name=\"description\" content=\"Fox Proceeding with Plans to Take FanDuel Stake at $2.2B Discount.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fox Plans to Take FanDuel Stake at $2.2 Billion Discount\" \/>\n<meta property=\"og:description\" content=\"Fox Proceeding with Plans to Take FanDuel Stake at $2.2B Discount.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2024-09-12T02:47:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-09-12T15:31:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/LM.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/\",\"url\":\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/\",\"name\":\"Fox Plans to Take FanDuel Stake at $2.2 Billion Discount\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/LM.jpg\",\"datePublished\":\"2024-09-12T02:47:28+00:00\",\"dateModified\":\"2024-09-12T15:31:08+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Fox Proceeding with Plans to Take FanDuel Stake at $2.2B Discount.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/fox-plans-to-take-fanduel-stake-at-2-2-billion-discount\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/LM.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/08\/LM.jpg\",\"width\":1200,\"height\":675,\"caption\":\"Fox Corp. 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