Flutter Entertainment Wins Legal Battle Over FanDuel Valuation

Flutter Entertainment, the parent company of PokerStars, Betfair, and Paddy Power, has won a significant legal battle over the valuation of FanDuel. The arbitration panel decided upon a $22 billion valuation for FanDuel, which is substantially higher than the $11.2 billion valuation proposed by Fox Corporation.

Fox Corporation wanted to acquire an 18.6% stake in FanDuel at the lower valuation. However, the tribunal confirmed that Fox retains a 10-year right to purchase half of the joint-option share but with a 5% annual escalator. This means the current buy price would be $4.1 billion.

Flutter Entertainment now owns nearly all of FanDuel but shares ownership rights with Fox Corporation for 37.2%. Despite the ruling, there is still one area of disagreement: Fox is claiming that Flutter cannot pursue an IPO without its permission, but Flutter has denied this, stating that it retains the right to float the company should it so wish.