Boyd Gaming’s US$1.7 billion sale of its 5% stake in FanDuel implies a US$31 billion value for the online sports betting provider, according to Jefferies Equity Research analyst James Wheatcroft in an 11 July investor note.
“The deal with Boyd Gaming gives Flutter 100% ownership of FanDuel and improves commercial terms for market access,” wrote Wheatcroft. An option is still held by Fox to buy 18.6% of FanDuel for US$4.5 billion but Fox would have to apply for United States gaming licensure in order to exercise that longstanding provision.
By renegotiating and elongating through 2038 its market-access agreements with Boyd, particularly with regard to New Jersey, FanDuel parent Flutter Entertainment will save US$65 million per year, Wheatcroft reported, retroactive to 1 July. The deal is expected to close in the third quarter.
