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Fox Corp sues FanDuel owner of over price of deal

Fox Corp sues FanDuel owner of over price of deal
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Fox Corp is suing the owner of FanDuel Group to get a better price when it exercises its option to buy part of the U.S.-based subdivision of Flutter Entertainment, CNBC reports.

The suit was filed against Flutter last week in New York’s Judicial Arbitration and Mediation Services.

Fox is asking for a $11.2 billion valuation for 18.6 percent of FanDuel Group, the same value Flutter paid when it purchased part of the group last year, according to CNBC.

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Flutter says it wants Fox to pay fair market value when it exercises its option to buy part of FanDuel in July, arguing the $11.2 billion would represent a “windfall” for Fox Corp.

“Fox's position that it has a right to acquire an 18.6% interest in FanDuel based on an $11.2 billion valuation is incorrect,” Flutter said in a statement sent to The Hill. “It would represent a windfall to FOX compared to the fair market valuation as of July 2021, to which the parties had previously agreed.  Flutter will not allow FOX’s filing, which is without merit, to distract from its business and will vigorously defend its position in the arbitration.”

In a statement shared with The Hill, Fox Corp confirmed it had filed a suit against Flutter "...to enforce its rights to acquire an 18.6% ownership interest in FanDuel Group—an American sports betting brand—for the same price that Flutter paid for that interest in December 2020."

FanDuel Group owns the brands FanDuel, FOX Bet, TVG, PokerStars and Betfair US. In addition to FanDuel Group, Dublin-based Flutter owns sports books, betting apps, online poker sites and other gambling businesses in the United Kingdom, Ireland, Australia, Europe and other countries, including Sky Betting & Gaming, Paddy Power and Betfair. 

The suit comes as Flutter considers spinning off FanDuel Group as a public company and as legalized sports betting continues to expand in the wake of a 2018 Supreme Court decision finding a federal law restricting sports betting unconstitutional.