DraftKings takeover Reports Are Unsurprising
Diamond Eagle Procurement was said to be in progressive talks to buy DraftKings in late October. The procurement firm, founded by Hollywood producers and actors, was then rumoured to be in “private negotiations” with the operator. DraftKings representative said: “DraftKings speaks to a different company regarding numerous matters in the usual course of commercial and it is our over-all policy not to comment on the details of any of the discussions.”
The story was far from disbelief. In early October, Flutter declared it will obtain Stars to form a business with an £11bn ($13.46bn) market capital and joint pro forma revenue of £3.8bn for 2018. Instantly, that left DraftKings in a harder position within the USA market, as competing FanDuel is owned by Flutter and has the likes of Fox Bet and PokerStars to align with. With FanDuel leading the New Jersey sports gambling market, the strategic advantages it stands to gain when working with Stars Group’s brands are threatening to extend all existing gaps.
The DraftKings Going Strong
DraftKings finds itself in a strong position within USA gaming. However, it doesn’t look as strong while Flutter goes to add a lot of strings to FanDuel’s bow. DraftKings looks at possible M & A of its own in reply, then, it was a no-brainer, even if it does decide against taking this path and goes it alone. The operator’s gambling and fantasy sports success, and also its technological achievements, make it an attractive prospect for possible buyers. What it needs to compete in this tough market conditions are scaling. Gambling Insider has speculated about the possible DraftKings M & A, offering the notion of the operator to acquire the UK-facing brand Football Index. Deals such as that must go on the backburner in favour of the partnerships of a bigger size and nature.
The firm has the previous history of trying big-scale M & A, failing to settle a 2016-17 merger with FanDuel – when the two firms were fantasy sports giants and had not entered the sports staking arena. An external takeover is one of the potential outcomes. However, what if DraftKings has acquired, or merged with, another gambling firm. William Hill would be o the last outstanding big-name candidates on the gaming market.
Check More on sports betting here
