Daily fantasy sports companies DraftKings and FanDuel have agreed to merge, according to Dan Primack. The report confirms rumors of a potential high-profile unison that have circulated since the beginning of the summer, with a formal announcement expected within the next week. DraftKings CEO Jason Robins will be CEO of the combined company and FanDuel CEO Nigel Eccles will be chairman, according to Primack.
Both companies have raised large amounts of funding from a variety of sources, including VCs, wealth management firms, sports leagues and media companies. DraftKings is backed by Major League Baseball and Major League Soccer, for example, while FanDuel counts NBC Sports and Time Warner among its investors.
DraftKings last secured a $153 million investment in September, its first backing since a $300 million round in August 2015 that generated a $2 billion valuation. FanDuel most recently raised $55 million in May, which followed a $275 million round in June 2015 at a rumored valuation of $1.5 billion.
Article by PitchBook