Flutter Estimates FanDuel Worth $31B in Boyd's Shares Acquisition
In a significant move for the sports betting industry, Flutter Entertainment and Boyd Gaming have agreed to a deal worth $1.76 billion, with Flutter set to acquire the remaining 5% stake in sportsbook operator FanDuel. This deal does not affect Fox Corporation's option to acquire an 18.6% stake in FanDuel, which was secured through Flutter's acquisition of The Stars Group (TSG) in 2020.
Fox Corporation still holds the option to purchase this stake at the 2020 market value of FanDuel, which was set at $4.5 billion, on or before December 3, 2030. This option was a result of Fox's rights conversion from TSG to FanDuel. Despite Flutter now owning 100% of FanDuel, Fox's option remains valid and can be exercised within the specified timeframe.
The current valuation of FanDuel is $11.2 billion, lower than the $31 billion mark from this week. The transaction includes $205 million for the revision of various existing commercial terms. The companies will continue to partner on new "market-access agreements" through 2038.
As for the operations outside of Nevada, FanDuel will continue to operate Boyd's retail sportsbooks until mid-2026. After this period, Boyd will assume responsibility for these operations. Boyd will also receive a fixed fee per state from FanDuel's mobile sports-betting operations in Iowa, Indiana, Kansas, Louisiana, and Pennsylvania, as well as FanDuel's online casino operations in Pennsylvania, upon the close of this transaction.
The exact purchase price for the remaining 5% stake in FanDuel is not specified in this paragraph. The deal is expected to close in the third quarter of 2025, subject to regulatory approvals. Flutter's stock held steady on Thursday, up 1.15% to $289.58 a share, while Boyd's stock briefly spiked on Thursday, from $84 per share to more than $86, before closing at $85.37 - a 1.5% gain.
No new information is provided about FanDuel's mobile sports-betting and online casino operations or Boyd's fees in this deal. The companies have not disclosed any new details about the timeline for Boyd assuming responsibility for the retail sportsbooks outside of Nevada.
- This significant deal between Flutter Entertainment and Boyd Gaming, with an analysis of the finance industry, suggests potential investments in the technology sector, particularly in the realm of sports betting and online gaming.
- The current valuation of FanDuel at $11.2 billion, following the acquisition by Flutter Entertainment, opens up opportunities for financial institutions engaged in investing in the business sector to perform a detailed technology analysis of FanDuel to further assess its market potential.
