What was already set to be one of the more eventful—and pivotal – weeks in the history of the daily fantasy industry became exponentially newsworthy with a report of a potential major shift its business landscape.
News of a ramp-up of merger discussions between the two DFS giants, FanDuel and DraftKings, coincided with the opening day of the Fantasy Sports Trade Association (FSTA) Summer Conference in New York City on Monday. The event’s host state is also a main focus of the industry this week on the legislative front, when the House and Senate are expected to either vote down or pass a resolution that legalizes the industry.
The rumblings of a serious turn in discussions between the two companies was initially reported by Bloomberg, citing sources familiar with the considerably fluid situation. The report emphasized that there was certainly no final agreement in place, and that the “deal” could certainly fall through for any number of reasons. With representatives of both companies initially declining comment, speculation ran rampant, and the idea of the possible “merger” actually being an acquisition by FanDuel of their biggest competitor was floated by several outlets.
Benefits/Disadvantages of Merger Discussed
A multitude of potential reasons—and benefits—of a joining of forces by the two companies have been cited in subsequent days, not the least of which would be a substantial savings on the lobbying and legal fees that have come to represent a significant portion of both firms’ budgets to date in 2016.
Others, such as renowned law professor and antitrust, gaming, and intellectual property attorney Marc Edelman, have been highly skeptical of the feasibility of such a move, emphasizing the robust threshold such a transaction would have to exceed in order to avoid anti-trust concerns on the part of the federal government.
Possible Motives Behind Release of News
Amidst all the speculation, one key industry figure provides some alternative views on the news, particularly the timing of its release viagra pharmacie prix. DreamCo Design CEO Jay Correia, who is also on the FSTA’s key Legislative Committee and recently authored Daily Fantasy: The Industry of Fantasy Sports in America Today, sees a number of possible motives behind the “sudden” public emergence of merger talks:
“FanDuel and DraftKings have floated the idea of a merger in the past. This is nothing new. The news push on the subject yesterday was strategically timed to coincide with the FSTA conference and with the state of New York’s legislative assembly,” remarked Correia.
“Dropping a hint like that makes it fair to speculate that the two are looking for new ways to excite investors or fast track / maximize going public. It also may be an indirect threat to New York that FanDuel would be willing to leave and partner up with DK, but that too is nothing more than speculation.”
A potentially pivotal event with respect to the likelihood or improbability of a possible merger—the decision of the New York Legislature on the current proposed bill to legalize the industry in the state—is expected to unfold by Thursday.