Fox Corporation has stated it intends to exercise its FanDuel options and will then own 18.6% of the nation’s largest mobile sports betting company.
Fox Wants a Seat at the Table
The way in which Fox acquired the options for 18.6% of America’s most popular sports betting platform, FanDuel, goes back several years in which it acquired a 5% share in The Stars Group (owner of PokerStars, among others).
Although that betting platform, “Fox Bet”, never manifested into more than just another small digital sports betting operator, its creation was serendipitous in that Flutter, the parent company of FanDuel, acquired The Stars Group shortly thereafter, which allowed Fox an option for 18.6% of its subsidiary.
Fast forward to today, and FanDuel has become the leading mobile sports betting company in the nation, followed closely by Boston-based DraftKings. FanDuel’s valuation is $35 billion, making Fox’s ownership stake valued at $6.5 billion, for which they would only have to pay $4.3 billion to exercise their options.
“But we will exercise it,” Fox CEO Lachlan Murdoch said. “We’re not going to leave $2 billion on the table. We think that, by the way, that option grows with value over the next six years.”
Licensing Hurdles
That equals more than $2 billion worth of equity for Fox, but the caveat is that they must be licensed as a gaming operator. Considering the company has until December 2030 to pull the trigger on its options, it gives it plenty of time to get its ducks in a row. However, there is also a contingency that stipulates the cost of the options increases by 5% per annum, which means time is of the essence.
“To fully monetize the option we need to be licensed as a gaming operator, even with only 18.6%,” Murdoch said. “And so we’ve started that process with state regulators to begin the gaming licensing approval.”
FanDuel Welcomes Cooley
In a recent executive promotion, former Executive Vice President and Chief People Officer for U.S. vertical farming company Bowery Farming, Caralyn Cooley, has been tapped as FanDuel’s newest CPO and will report directly to the company’s CEO, Amy Howe.
Cooley’s position will have her overseeing FanDuel’s human resources department, and she will be tasked with talent acquisition as well as implementing policies and procedures for the company’s DEI requirements.
According to a press release, Cooley has “deep experience scaling global operations, shaping unique cultures, and guiding teams through periods of intense growth.”
“I am very excited to welcome Caralyn to FanDuel,” said Howe. “Throughout her distinguished career, Caralyn has held global roles, building highly effective people teams that drive performance and reflect the needs of today’s diverse corporate culture. Her energy and passion for sports and the gaming sector made her an ideal fit, and her arrival strengthens our executive leadership team.”
FanDuel also announced the launch of its Trusted Voices: Conversations About Betting program in collaboration with EPIC Global Solutions to coincide with September’s Responsible Gaming Education Month. Former NBA pro Randy Livingston and his wife, sports agent Anita Smith, will serve as program ambassadors.
