DraftKings, FanDuel are reportedly in final stages of merger
Daily fantasy sport companies DraftKings and FanDuel are at the final yard lines for a merger, Bloomberg reported Monday.
DraftKings cofounder Jason Robins will reportedly take over as CEO and FanDuel cofounder Nigel Eccles will serve as chairman of the board, Bloomberg reported citing anonymous sources familiar with the matter.
The merger has been speculated for months and championed by investors given the company's similar business strategies and regulatory issues.
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Just last week, the companies reached a settlement over lawsuits in New York that alleged their advertisements intentionally misled consumers. Each company had to pay $6 million in penalties and costs.
DraftKings declined to confirm if there are merger talks happening, and if a deal is soon to come.
“As we have stated previously, a potential combination would be interesting to consider. However, as a matter of policy, we don’t comment on rumors or speculation, and there can be no assurances at this time that any discussion about a combination would result in an agreement or merger," DraftKings said in a statement posted to its website.
ESPN reported that the deal could be imminent. But final details have yet to be hashed out, including what the name of the company will be, what the exact leadership structure is and where the company's headquarters will be located.
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As part of the merger, the companies reportedly will look to raise more venture capital.
There's also a question of whether the deal could go through given the companies' dominating share of the market. If combined, DraftKing and FanDuel would reportedly control more than 90 percent of the daily fantasy market.
Kerry Flynn is a business reporter for Mashable covering the tech industry. She previously reported on social media companies, mobile apps and startups for International Business Times. She has also written for The Huffington Post, Forbes and Money magazine. Kerry studied environmental science and economics at Harvard College, where she led The Harvard Crimson's metro news and design teams and played mellophone in the Band. When not listening to startup pitches, she runs half-marathons, plays with puppies and pretends to like craft beer.
