Mar 8, 2018

Fantasy sports site FanDuel in talks to go public

Dan Primack, author of Pro Rata

FanDuel is a fantasy sports site. Photo: Michael Loccisano / Getty Images

FanDuel is in advanced talks to go public, but not via an IPO.

The plan: Multiple sources tell Axios that the fantasy sports site is likely to participate in a reverse merger with Platinum Eagle Acquisition Corp., a special purpose acquisition company formed earlier this year by veteran media executive Jeff Sagansky.

  • Huh? Special purpose acquisition companies, or SPACs, are basically management teams that raise money from the public markets, with the promise of then buying one or more companies.
  • Platinum Eagle raised $300 million earlier this year and currently trades on the NASDAQ.

It's unclear how much Platinum Eagle is paying for the company, or for what percentage. FanDuel last year claimed its fully-diluted value was $1.2 billion, which was calculated for the purpose of a merger with rival DraftKings that was later scuttled by antitrust regulators.

The New York-based company had subsequently held unsuccessful talks with private investors about a new round of funding, on top of the $435 million or so that it already has raised from firms like KKR, NBC Sports, Comcast Ventures and the NBA.

  • One source says to think about the Platinum Eagle deal more as a fundraise for FanDuel than as an exit for FanDuel investors.

A company spokeswoman declined comment.

Go deeper

Updated 3 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7:30 p.m. ET: 5,916,464— Total deaths: 364,357 — Total recoveries — 2,468,634Map.
  2. U.S.: Total confirmed cases as of 7:30 p.m. ET: 1,744,258 — Total deaths: 102,709 — Total recoveries: 406,446 — Total tested: 16,099,515Map.
  3. Public health: Hydroxychloroquine prescription fills exploded in March —How the U.S. might distribute a vaccine.
  4. 2020: North Carolina asks RNC if convention will honor Trump's wish for no masks or social distancing.
  5. Business: Fed chair Powell says coronavirus is "great increaser" of income inequality.
  6. 1 sports thing: NCAA outlines plan to get athletes back to campus.

Trump says he spoke with George Floyd's family

President Trump in the Rose Garden on May 29. Photo: Win McNamee/Getty Images

President Trump told reporters on Friday that he had spoken with the family of George Floyd, a black resident of Minneapolis who died after a police officer knelt on his neck on Monday.

Driving the news: Former Vice President Joe Biden said via livestream a few hours earlier that he, too, had spoken with Floyd's family. The presumptive Democratic presidential nominee implored white Americans to consider systemic injustices against African Americans more broadly, Axios' Alexi McCammond reports.

Former Minneapolis police officer in custody

A man rides a bicycle up to a law enforcement checkpoint today in Minneapolis. Photo: Scott Olson/Getty Images

The people of Minneapolis who took to the streets to protest got results Friday afternoon, but the nation will still enter the weekend on edge.

Why it matters: It's hard to imagine fired police officer Derek Chauvin being arrested so quickly on third-degree murder charges without this week's protests.