FOX SUES FLUTTER OVER PRICE OF FANDUEL STAKE OPTION

US media giant Fox Corp is pursuing legal action over the pricing of its stake option in Flutter Entertainment-owned FanDuel. 

Last year, Flutter increased its stake in FanDuel to 95% through a purchase from Fastball Holdings. In order to help close the deal, Fox purchased new Flutter shares with the option to acquire an 18.6% stake FanDuel in July 2021. 

The dispute centres around the price for that stake. Flutter insists the agreement was for Fox to pay a “fair market value in July 2021” if it decided to exercise the option. 

However, Fox says the deal was based on it paying the same price Flutter paid for the interest in December 2020. Considering FanDuel’s total valuation in December 2020 was $11.8B, Fox claim means the share would be worth $2.09B. 

In a statement reported on CNBC, a Fox spokesperson said: “Fox Corporation has filed suit against Flutter to enforce its rights to acquire an 18.6% ownership interest in FanDuel Group for the same price that Flutter paid for that interest in December 2020.”

Flutter responded with: “Flutter will not allow Fox’s filing, which is without merit, to distract from its business and will vigorously defend its position in the arbitration.”