FanDuel Execs Hit Paydirt — Founders, Shareholders Left Out in the Cold — in Paddy Power Betfair Merger

The $465 million offer was “larger than any other offer made” while the company explored a sale, but still is not enough to fulfill a $558 million commitment to the company’s “A Preference Shares,” the report continued.

FanDuel’s current capitalization, including this aggregate preference amount, is the result of a restructuring which occurred in 2017 following the unsuccessful attempt to merge FanDuel with Draft Kings,” the document reads.

“That 2017 restructuring reduced the total amount of preferences that would need to be paid off in a change of control transaction prior to any consideration going to the holders of ordinary shares from the previous amount that had been in place since FanDuel’s 2015 Series E Financing.

The sale of FanDuel to Paddy Power Betfair represents a shift in the company’s vision, as it prepares to become a major player in online sports gambling, following the Supreme Court’s decision in May to strike down a federal ban on sports betting.

Documents related to the sale acknowledge that some investors such as the NBA have agreed to sell all of their stock in the company because they are “unwilling to directly or indirectly own equity securities in the Company for regulatory and other reasons related to the Company’s present and future participation in the sports betting business.”

FanDuel was prepared for the Supreme Court decision and has worked with regulators in states across the United States. Partnering with PPB combines in sports betting.

DraftKings, the other leading DFS provider, has also begun to position itself for sports betting. In June, , which will provide the company with the interface and technology to support sports betting.