FanDuel Valuation Soars, Flutter Buys Remaining Stake

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00:00And finally, I think we learned quite a bit about FanDuel with the last 24 hours. Yes,

00:06the story is up at Legal Sports Report about Boyd's selling 5% of their stake.

00:10Sam, the bigger story is what this company is now worth, isn't it?

00:15Yeah, it just keeps getting bigger and bigger. Flutter, which is the parent company of FanDuel,

00:20it bought FanDuel in 2018. A great return on investment for them. They just bought the

00:25remaining 5% stake for $1.8 billion. So I wasn't a math major, but you can do the math there.

00:32That's a lot of billions. And Flutter is pretty happy that they now own the entirety of FanDuel,

00:39which is the biggest sports betting brand in the US. Anytime you talk to any investor,

00:44they're always focused on Flutter. DraftKings is up there as well. But we've seen FanDuel,

00:49you know, they've done what they've done. They have all the market share, they're able to squeeze

00:52more money out of customers, more revenue, more parlays, they have the best tech, they have the

00:57best brand awareness. So not surprising that they would want to gobble up the rest of it.

01:02For Boyd, it actually is a good deal for them, because they will now get a fixed percentage of

01:08FanDuel revenue in a bunch of states. Originally, they had this agreement as kind of a market access

01:13agreement. So Boyd owns a bunch of properties in Las Vegas, especially Kansas, Louisiana, that allows

01:21FanDuel to be there by partnering with them. FanDuel, in turn, you know, gets the remaining

01:25stake back. And it's going to and it should save Flutter around $65 million annually by restructuring

01:31this deal and paying that $1.8 billion. So it will be it should be a good return on investment for

01:37them. But another interesting note here is that they might not own 100% of FanDuel for long. The Fox

01:43Corporation still has the rights to sort of repurchase 18% of FanDuel. And just a couple months ago,

01:51Lachlan Murdoch, who's big up in the Fox organization, said he wants to do that eventually

01:56someday. So this also could be one of those moves where they're trying to recoup some stake before,

02:01you know, that next move comes along. But it's valued at over $20 billion right now,

02:07which allows Fox to be able to do this. So it's a lot of money we're talking about with FanDuel,

02:12you know, with sports betting, we often talk about all the companies that are losing money and not

02:17making money. But FanDuel is certainly the outlier there. DraftKings, not far behind. But yeah,

02:22some pretty big news in terms of how how this colossal this company is now valued at just a few

02:27years later. Yeah.

02:33you