Yahoo Finance Rupert Murdoch will not derail FanDuel float plans, says Flutter chief
The boss of one of the world’s biggest gambling firms has denied that legal action by Rupert Murdoch’s Fox Corporation will stop a lucrative float of its market-leading US arm.
Peter Jackson, the chief executive of Flutter Entertainment, said Fox had “no right” to prevent a potential float of FanDuel that could value the American subsidiary at more than $11bn (£8bn).
A legal row erupted earlier this month over Fox’s option to buy 18.6pc of FanDuel from Flutter.
Fox claimed it was entitled to acquire the stake at a lower historical price, but Flutter said it must pay “fair market value” based on a higher value this summer.
Originally a fantasy betting website, FanDuel is the most popular sports wagering website in the US.
As a decades-long ban on sports betting is repealed on a state-by-state basis, the company has built a 40pc share of what is expected to be the world’s biggest regulated market.
Flutter is considering the float of a small part of FanDuel in the US to capitalise on surging values of its rivals that are listed across the Atlantic. Loss-making rivals such as Draftkings boast a stock market value of almost $24bn.
Fox insiders believe that having a legal challenge hanging over the business could block any float plans.
However, Mr Jackson said that the row, subject to arbitration by a New York judge, was on a “narrow” legal point.
“We don't believe that will have any impact on our ability [to float FanDuel] if we choose to IPO a small stake,” he said.
The comments came as Flutter, the FTSE 100 group best known in the UK for Sky Bet, Paddy Power and Betfair, posted a 33pc increase in first quarter revenue to £1.5bn.
Flutter’s brands accounted for 56pc of all bets placed at horse racing’s Cheltenham Festival in March ,with Mr Jackson declaring that the year was off to a strong start.
Shares in Flutter fell 2.4pc in afternoon trading in London.
