Fox Corporation is considering taking up its option to acquire an 18.6% stake in online gambling operator FanDuel. The company received this option after selling its position in the Stars Group to Flutter Entertainment in 2020.
an arbitration ruling in 2022 that set the purchase price
Speaking at a conference on Tuesday, Fox Corporation CEO Lachlan Murdoch estimated the stake to be worth about $6.5bn at the current market value. Fox will only need to pay about $4.3bn to acquire the position following an arbitration ruling in 2022 that set the purchase price at $3.7bn, rising 5% annually. It has until 2030 to use the option before it expires.
One thing holding back the media company is that it needs to receive gaming operator licenses to complete the transaction. Murdoch confirmed that Fox is in the process of working with regulators in different states to get the necessary approvals.
Fox Corporation previously had a presence in the US sports betting sector through Fox Bet before it shuttered operations last summer due to the lack of a path to profitability. FanDuel is currently neck and neck with DraftKings as the two leaders in the US online sports betting sector.