What is being announced?
Today, FanDuel and DraftKings are announcing that we are merging, bringing together the shared talent, technology and industry relationships of DraftKings and FanDuel to advance the fantasy sports industry and to better serve players and fans. This merger of equals will allow for further growth and innovation in the fantasy sports industry at large.
Why are you merging?
DraftKings and FanDuel are merging to create a stronger entity that can focus on growing the fantasy sports market by developing new products and features, delivering enhanced user experiences and creating an overall stronger fantasy sports community, all aimed at creating a more diverse, exciting and appealing experience for fantasy sports players and sports fans generally.
By combining and streamlining resources, FanDuel and DraftKings can work more efficiently and economically with state government officials to develop a standard regulatory framework for the industry. This will not only enhance the long-term growth prospects and improve sustainability for the combined company, but also make it easier for other players to enter and thrive in the market.
What does this mean for consumers?
Our consumers are at the core of everything we do and we have always been passionate about providing the best possible experiences for them.
Together, DraftKings and FanDuel can leverage their technology resources to give consumers choices they would not have without the merger. The combined company expects to accelerate innovation to deliver more products and features to consumers and provide more contests, more social connectivity and a better overall user experience.
For the foreseeable future, FanDuel and DraftKings will continue to operate under their respective brand names. Once approved, we envision this merger will create a stronger, more sustainable entity that can focus on growth, product development, delivering enhanced user experiences and creating an overall stronger fantasy sports community.
What will the new leadership team look like?
The top minds and innovators in the fantasy industry will come together to guide the combined company and bring unique expertise and talent.
At closing, DraftKings CEO Jason Robins will become CEO of the newly combined company and FanDuel CEO Nigel Eccles will become Chairman of the Board. Further operational and organizational details will be finalized and announced at closing.
Will both sites remain operational?
Both platforms will remain separate and operational through the 2017 NFL season while the deal is finalized.
Will both sites maintain their brands?
DraftKings and FanDuel will continue to operate under their respective brand names for the foreseeable future.
When do changes begin taking effect?
The transaction is subject to customary closing conditions and regulatory clearance, and it is expected to close in 2017. Until then, it’s business as usual for both FanDuel and DraftKings.
Once integrated after closing, we envision this merger will create a stronger, more sustainable entity that can focus on growth, product development, delivering enhanced user experiences and creating an overall stronger fantasy sports community.
Would the combined company have the power to substantially raise prices?
No. We intend to keep our commission fees and structure competitive in order to offer consumers a compelling experience. The merger will not affect our obvious incentive to continue growing the DFS space through guaranteed prize pools and attractive commission levels. Users play on our platforms because they love the contest structures and optionality. We size our contests and offerings to be competitive with other fantasy companies. We know that there are other platforms players could go on if we tried to raise commissions. This remains equally true whether the companies remain independent or combine.
As always, DraftKings and FanDuel will clearly provide information on commission costs and technical differences. Further operational and organizational details will be finalized and announced after closing.
Does this deal impact the partnerships in place with the existing sports franchises / networks?
We do not anticipate any impact on our existing partnerships.
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