Investors in Flutter Entertainment, the FTSE 100 playing group, are poised to find the result of a year-long authorized dispute with Rupert Murdoch’s Fox Corporation over the worth of FanDuel, the American sports activities betting platform.
Sky News understands {that a} New York courtroom will ship its verdict on the worth at which Fox ought to be allowed to train an choice over an 18.6% stake in FanDuel.
City sources mentioned Flutter was anticipated to announce the result late on Friday night, with one shareholder within the London-listed firm suggesting they have been assured of a optimistic consequence for the group.
Fox filed an arbitration declare in opposition to Flutter in April final 12 months, arguing that the truthful market worth for it to accumulate the FanDuel stake was the identical worth which Flutter itself had paid when it elevated its shareholding in December 2020.
Flutter, which owns manufacturers reminiscent of Paddy Power and Betfair, has argued that that valuation – roughly $11bn – is barely half the truthful valuation that Fox ought to now be obliged to pay.
Given the dimensions of the FanDuel stake at stake, the gulf between the 2 sides represents a possible extra windfall for Flutter of as a lot as $2bn.
Peter Jackson, Flutter’s chief government, has been public {that a} separate inventory market itemizing of FanDuel is an choice for the corporate in future.
Flutter now owns 95% of FanDuel, having acquired its most up-to-date stake from a consortium backed by KKR, the personal fairness agency.
If the result of the arbitration is beneficial to Flutter, analysts speculate that it could return a part of the proceeds to buyers within the occasion that Fox exercised its choice to accumulate the stake.
A spokesman for Flutter, which has a market capitalisation of virtually £20bn, declined to remark.
Source: information.sky.com”