FanDuel to raise new funds following merger roadblock
Operator reportedly looking to spend on advertising ahead of new NFL season
FanDuel is preparing for a new round of fundraising following the Federal Trade Commission’s (FTC) decision to block its merger with DraftKings.
According to sources cited by the Sunday Times, the company is looking for new cash to spend on advertising ahead of the forthcoming NFL season now the merger is looking unlikely.
“It could mean they look for other potential investors but another round of funding from existing investors is more likely,” the source said.
FanDuel has already raised around $350m from existing investors, including Time Warner, NBC Sports and Comcast, meaning founder Tim Eccles’ stake has reportedly dipped below 10%.
FanDuel and DraftKings will argue their case for combining in court in the coming months, after the FTC said the deal would create a “near-monopoly” in the DFS market
The Times’ source added: “The merger plan allowed the company to avoid another funding round late last year and was driven by the investors with a view to preparing the combined company for flotation in New York.”
FanDuel had not responded to an EGR request for comment at the time of publication.