Fitzgerald Cecilio – 4E Sports Reporter
New York, NY, United States (4E Sports) – Fantasy sports operators DraftKings and FanDuel jointly announced their merger, which is expected to be finalized in the second half of 2017.
While the merger is pending regulatory approval, both sites will continue to operate under their respective brand names.
According to sources, it will be a 50/50 split between the fantasy giants. With each company getting three seats on the board, with one independent director.
DraftKings CEO Jason Robins will be the CEO of the new company while FanDuel CEO Nigel Eccles will become the chairman of the board.
The name of the joint company has not been revealed. It will have headquarters in New York and Boston.
“We have always been passionate about providing the best possible experience for our customers and this merger will help advance our goal of building a transformational global sports entertainment platform,” Robins said in the release announcing the agreement.
“Joining forces will allow us to truly realize the potential of our vision, and as a combined company we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately,” he added.
“Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry,” said Eccles .
The merger is expected to draw scrutiny, potentially from the Federal Trade Commission as FanDuel and DraftKings make up more than 80 percent of the daily fantasy marketplace.
An estimated 40 million North Americans play only season-long fantasy sports, eight times more than the number of those who play daily fantasy.
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