Game face

7 April 2021 By Jennifer Saba Follow @jennifersaba

Rupert Murdoch’s empire is suing Flutter to try to get last year’s price on a stake in its U.S. sports betting firm. Comparable companies suggest FanDuel’s value may be four times higher. Fox gets little out of paying a toppy price. Given the split, it’s worth going to the mat.

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Fox said on April 6 it filed a lawsuit against Flutter Entertainment to enforce its rights to acquire an 18.6% ownership stake in sports betting brand FanDuel for the same price that Flutter paid for that interest in December 2020.

On Dec. 3 Flutter agreed to buy an additional 37.2% stake in FanDuel for $4.2 billion from Fastball giving the U.S. sports betting operation an implied enterprise value of $11.2 billion.

FanDuel’s parent Flutter said on April 7 that arbitration measures with Fox were put in place at the time of its announced 2019 merger with sports betting firm Stars Group in the event of a disagreement between the two parties relating to the option.

Fox formed a joint venture with Stars in May 2019. As part of Flutter’s merger with Stars, Fox was granted the option of buying an 18.6% stake in FanDuel.

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On Dec. 3 Flutter agreed to buy an additional 37.2% stake in FanDuel for $4.2 billion from Fastball giving the U.S. sports betting operation an implied enterprise value of $11.2 billion.

Fox formed a joint venture with Stars in May 2019. As part of Flutter’s merger with Stars, Fox was granted the option of buying an 18.6% stake in FanDuel.

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