Flutter to defend position against Fox amid lawsuit
Fox has stated in a response that it has the option to obtain a stake in FanDuel Group in July, and went on to say that it had progressed with the acquisition of an 18.6% stake ownership for the same amount that Flutter had to pay back in December of 2020. Flutter then went on to increase its interests in FanDuel tp up to 95% after it obtained a massive $4.175 billion share of over 37% which was formerly owned by Fastball Holdings.
Aside from that, Flutter spoke of the legal issues and stated that Fox’s position is inaccurate and groundless, adding that it would mean a windfall to Fox considering the market valuation in July.
Flutter mentioned in a statement:
“Under the terms of Flutter’s agreement with Fox Corporation, an arbitration mechanism was put in place at the time of The Stars Group merger announcement to be conducted in the event of a disagreement between the two parties relating to the option. That now being the case, such a process has been initiated by Fox. Flutter will not allow Fox’s filing, which is without merit, to distract from its business and will vigorously defend its position in the arbitration.”
Peter Jackson, CEO of Flutter Entertainment, proposed in March of 2021 that the group would carry out its dedication to this possibility, but also underlined that Fox needs to pay the fair market value.
Jackson further said:
“In terms of the mechanism for dealing with Fox and why we negotiated with them as part of the purchase or the deal we did with The Stars Group, we haven’t put anything formal in place at this moment, but we will honour our commitment to give Fox an option to acquire 18.6 per cent of FanDuel at fair market value in July 2021.
To be clear on the valuation, Fox will have to pay the fair market value, which is different from the negotiated price agreed between Flutter and Fastball, which reflected the specific circumstances that Fastball found itself in. The valuation will be carried out in the same manner that would have occurred had Fastball still owned the stake.”