The Federal Trade Commission has moved to block the merger of daily fantasy sports sites DraftKings and FanDuel. The US regulator will jointly file a complaint with the attorneys general of California and Washington, DC, alleging the combined company would control more than 90% of the domestic market for daily fantasy sports, depriving customers of the benefits of competition.

DraftKings

DraftKings CEO Jason Robins, slated to run the combined company, and FanDuel CEO Nigel Eccles, who would become its chairman, have issued a statement confirming their intent to explore all options. Founded in 2012, DraftKings last secured a roughly $119 million round in March at a $1 billion valuation, far below the $2 billion value it garnered in August 2015. FanDuel most recently raised $55 million in May 2016 at a $1.1 billion valuation.

An administrative trial will begin on November 21, a year after the deal was announced. Check out more info in the free profiles of DraftKings and FanDuel.

Article by PitchBook