{"id":82932,"date":"2018-07-06T17:00:25","date_gmt":"2018-07-07T00:00:25","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=82932"},"modified":"2018-07-06T17:15:33","modified_gmt":"2018-07-07T00:15:33","slug":"fanduel-execs-make-bank-founders-dont-in-paddy-power-betfair-merger","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/fanduel-execs-make-bank-founders-dont-in-paddy-power-betfair-merger\/","title":{"rendered":"FanDuel Execs Hit Paydirt — Founders, Shareholders Left Out in the Cold — in Paddy Power Betfair Merger"},"content":{"rendered":"

Daily fantasty sports betting player FanDuel is putting its money where its suits are: that\u2019s the reality unfolding in front of the DFS giant’s founding members and common shareholders, as the company\u2019s sale to Irish bookmaker Paddy Power Betfair unfolds.<\/p>\n

\"Paddy
FanDuel would provide Paddy Power Betfair a customer base containing 6 million registered users, as well as recognizable US brand. The DFS site would be merged with PPB\u2019s existing US operations. (Image: Paddy Power Betfair)<\/figcaption><\/figure>\n

Along for the Ride<\/h2>\n

FanDuel\u2019s majority shareholders — KKR and Shamrock Capital — exercised their \u201cdrag along right\u201d in the sale, which forces minority shareholders to accept the sale. The company appeared to acknowledge the slight that shareholders might feel, saying the PPB offer was the best one on the table.<\/strong><\/p>\n

\u201cIt is important to note that no other offer available to FanDuel as a result [of exploring a sale] was of a sufficient value, if distributed pursuant to the terms of the Articles with respect to a change of control transaction, to entitle any holders of ordinary shares to participate with respect to such shares,\u201d a document regarding the sale and obtained by Legal Sports Report<\/em>\u00a0reads.<\/p>\n

\u201cIn addition, the allocation of the proceeds of [the sale] to FanDuel\u2019s Shareholders is consistent with the terms of FanDuel\u2019s pre-existing organizational documents that have been in effect for an extended period of time.\u201d<\/p>\n

Legal Sports Report <\/em>noted\u00a0that FanDuel executives will profit handsomely from the merger, and could receive the following projected payouts:<\/p>\n

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