Online gaming company in talks to buy FanDuel
European online gaming company Paddy Power Betfair confirmed that it is in talks to acquire FanDuel, one day after the U.S. Supreme Court struck down a federal ban on sports gambling.
Why it matters: At the same time that gaming regulations seem to be easing in the U.S., they've been increasing in overseas markets like Britain.
Instant replay: FanDuel previously had been working to go public via a reverse merger with Platinum Eagle Acquisition Corp., a special purpose acquisition company formed earlier this year by veteran media executive Jeff Sagansky.
- The New York-based company had raised $435 million in VC funding from firms like KKR, NBC Sports, Shamrock Capital Group, Comcast Ventures and the NBA.
- It had been valued at $1.2 billion, per terms of a planned 2017 merger with DraftKings that was scuttled by U.S. antitrust regulators.
This would be the second U.S. daily fantasy sports purchase for Paddy Power Betfair, which last year paid $48 million to acquire Draft. No word yet on how much Paddy Power might pay, but a source puts the discussed price tag at between $600 million and $700 million.
A FanDuel spokeswoman yesterday declined comment.