Flutter Considering Spinoff and IPO of U.S. Betting Unit FanDuel
(Bloomberg) -- Flutter Entertainment Plc said it is looking at options for its U.S. sports betting business FanDuel Inc., including an IPO, the U.K.-based mobile gaming company said in a statement.
It is considering a listing in the U.S. of a “small shareholding” in FanDuel, but has yet to make a final decision, Flutter said. CNBC reported Friday that the company was under pressure to examine a spinoff and share sale of the unit from some investors, who have expressed frustration that Flutter is trading at a discount to DraftKings Inc. despite FanDuel’s status as the largest competitor in the U.S.
“Flutter regularly evaluates its organizational and capital structure to assess how best to position itself to deliver upon the group’s strategy,” the company said in the statement. “Should a decision be made to proceed with a listing in due course, an announcement will be made as appropriate.”
Fox Sports owns 2.5% of Flutter and has an option to buy an additional 18.5% in FanDuel in July. Clearing up Fox Sport’s ownership could delay a spinoff of the company, CNBC reported, citing people familiar with the matter.
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