Home / Business / The owners of FanDuel and PokerStars have struck a $12 billion deal to create the worlds biggest online betting group

The owners of FanDuel and PokerStars have struck a $12 billion deal to create the worlds biggest online betting group

poker pot jackpot cashReuters / Steve Marcus

  • The owners of FanDuel and PokerStars have struck a $12 billion deal to create the world’s biggest online betting group.
  • Flutter and The Stars Group, which generated combined revenues of $4.7 billion last year, plan to offer gambling products such as online sports betting, fantasy sports, and online poker.
  • The pair expect the merger to generate about $170 million in pre-tax cost savings, and boost Flutter’s underlying earnings per share by 50% the year after the deal closes.
  • Watch Flutter and The Stars Group trade live.

The owners of FanDuel and PokerStars have struck a $12 billion deal to create the world’s biggest online betting group.

Flutter and The Stars Group have agreed an all-share deal to bring together their brands such as Paddy Power, Betfair, Full Tilt, and Sky Bet. They plan to offer a broad portfolio of gambling products including online sports betting, fantasy sports, online poker, horse racing, free-to-play and casino games.

Flutter and Stars — headquartered in Ireland and Canada respectively — racked up a combined $4.7 billion in revenue last year. Together, they boast around 4 million active users across more than 100 countries.

The two companies expect the merger to generate around $170 million in annual, pre-tax cost savings, and open up cross-selling opportunities. Flutter, which will own 55% of the combined group, expects the tie-up to boost its underlying earnings per share by 50% the year after the deal closes. It also anticipates a six-fold increase in its international sales.

The proposed merger gives Fox Sports, which partnered with Stars in May to provide sports betting in the US, the right to acquire an 18.5% stake in FanDuel in 2021. The option is an incentive for Fox to use its national media platform to grow the fantasy sports business, which Paddy Power bought for $465 million last year.

Read more: Fantasy sports site DraftKings is looking to raise new funding at a $2 billion valuation

Check Also

SpaceX Dragon carried mighty mice, robot companion into space – Business Insider

http://uk.businessinsider.com/spacex-dragon-carried-mighty-mice-robot-companion-into-space-2019-12

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.