Report: DraftKings and FanDuel are in talks to merge
REUTERS/Lucas Jackson
Daily Fantasy Sports companies DraftKings and FanDuel are discussing a possible merger, Bloomberg reports.
The two companies, which were both valued at over $1 billion in 2015, are currently embroiled in several battles over the legality of their websites. Many state legislatures, including New York, believe daily fantasy sports amounts to illegal gambling.
At the moment, DraftKings has agreed to stop accepting paid entries in nine states, while FanDuel has temporarily shuttered paid contests in 10.
These legal battles have caused the valuations of both companies to drop by as much as 50%. According to Bloomberg, investors in both companies have long been pushing a merger, which would help the companies cut back on the large amounts of ad money spent targeting one another.
No transaction has been agreed upon, however, and Bloomberg reports the merger could still fall through.
According to Yahoo's Daniel Roberts, talks of a merger between the two companies have stalled in the past over uncertainty about which company's CEO would take over at the helm of the merged company.
https://twitter.com/mims/statuses/742437698871394304
DraftKings and FanDuel merger talks stopped real fast in the past because of one issue: who would be CEO, Jason Robins or Nigel Eccles?
DraftKings was not immidiately available when reached for comment by Business Insider. FanDuel declined to comment on the story.