Murdoch claims victory in battle with Betfair owner to boost his gambling ambitions

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The ruling, issued Friday evening, enshrines Fox’s right to buy a stake in FanDuel at any time through 2030. The overall price increases 5% each year, meaning that if Fox acquired the stake now, it would have to pay $4.1 billion. This would value FanDuel at $22 billion – roughly the same as Flutter’s market valuation at £20 billion. As a result, shares of the FTSE 100 company are expected to rise Monday morning.

There was speculation when the legal challenge was filed in April 2021 that Fox’s FanDuel stake could actually be worth more than $5 billion.

Fox said in a statement: “Fox has no obligation to commit capital to this opportunity unless and until it exercises the option. This option on a very significant stake in the betting operation Market-leading online sports betting in the United States confirms the tremendous value Fox has created as the premier media partner in the US sports betting landscape.

Due to the way the option was initially traded, sources said Fox had low concerns that it may have no right to buy FanDuel’s stake.

The complicated legal fight comes as Mr Murdoch’s plans to combine News Corporation, the publisher behind The Wall Street Journal and The temperature, with Fox. Media industry analysts believe that the logic of merging the two companies is to push further into the gambling business.

In August, Lachlan Murdoch, chief executive of Fox, described sports betting as “a huge opportunity” for Fox Sports. The combination would strengthen the firm’s sports betting hand, sources told Reuters.

America is in the midst of a sports betting revolution. The country is repealing a decades-old ban on sports betting on a state-by-state basis. When completed, the United States is expected to be the largest regulated sports betting market in the world.

FanDuel has forged a dominant position in the industry. He was able to use his technology as a fantasy sports gaming operator before the repeal of the laws, to establish a 40% market share of the US sports betting market.

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