The Leaders FanDuel and DraftKings Discuss Projected Merger
Tuesday, November 1st, 2016
The executives from the two leading operators in daily fantasy sports, Fanduel and Draftkings, are now considering a merger after a whole year of regulatory and legal disputes for the two companies.Last week there was a dispute concerning deceitful ad practices which cost both of the companies approximately $6 million. This has pushed the merger as a more immediate solution for the financial difficulties both operators have been facing for the past year.However, the new of this unavoidable merger have been met with a great deal of skepticism. It is quite common with mergers, that the assigned leadership roles, such as the one of the CEO are proven to be challenging for companies, especially in this example, the two operators who have been competing fiercely in the last few years.However, the regulators will also have to decide how easy it will be for other competitors to enter our fantasy sports market.Moreover, the United States anti-trust and competition regulators will most likely keep the new company under strict surveillance. This prediction is accurate because both operators currently hold the top two places at the popular Daily Fantasy Sports market.The merger is still not confirmed, however, considering the growing pressure to settle their debts, the only option for Draftkings and Fanduel may be a merger.