Flutter Wins Arbitration: FanDuel Valued at $20 Billion

An arbitrator has ruled in favor of Flutter, confirming that the exercise price of FOX Corporation's option to acquire 18.6% of FanDuel Group is based on a FanDuel valuation of $20 billion. This valuation is based on fair market value as of December 2020, the date on which Flutter acquired a 37.2% stake from Fastball Holdings LLC for an implied FanDuel valuation of $11.2 billion.

The exercise price is subject to a 5% annual compounding carrying value adjustment up to the date of any potential exercise by FOX prior to December 2030. As of today, this equates to a valuation for FanDuel of $22 billion and a cost of $4.1 billion for FOX to acquire an 18.6% stake. FOX has a ten-year period from December 2020 within which to exercise the Option, should it wish to do so.

Additionally, the tribunal has denied FOX's claim that Flutter had failed to provide commercially reasonable resources to the operation of FOX Bet. Flutter has agreed that it will not proceed with any potential IPO, if at all, until the tribunal has resolved this remaining matter or both parties have reached an agreement on the matter.