Fox Corporation has filed a lawsuit against Flutter Entertainment to force its right to purchase an 18.6% stake in FanDuel Group for the same price that Flutter offered in December 2020. By mutual agreement, the parties filed the suit as arbitration before JAMS in New York, NY.
“Fox Corporation has filed suit against Flutter to enforce its rights to obtain an 18.6% ownership stake in FanDuel Group — an American sport betting brand — for the same price that Flutter paid for that interest in December 2020,” Fox said.
Flutter has stated that Fox must pay a “fair market value” to exercise the option in July and has indicated that it will “vigorously defend its role in the arbitration.”
Flutter combined its US business with FanDuel in 2018. It then increased its FanDuel share to 95% in December in a $4.18 billion transaction by purchasing Fastball Holdings’ 37% stake.
Flutter Chief Executive Peter Jackson said during the company’s March earnings call, “We will honor our promise to offer Fox an opportunity to acquire 18.6 percent of FanDuel at fair market value in July 2021.” To be clear, FOX would have to pay the fair market value, which differs from the negotiated price agreed upon between Flutter and Fastball.
Flutter Entertainment owns Paddy Power Betfair, which was created as a result of a merger in 2016.