Fox Told It Will Need to Pay $3.7 Billion for FanDuel Stake

  • Aribitrator rules on valuation of sports-betting giant
  • FanDuel won’t pursue an IPO until other issues are resolved

Photographer: Andrew Harrer/Bloomberg

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Fox Corp. was told by an arbitrator that exercising its option to acquire an 18.6% stake in sports-betting giant FanDuel would cost it at least $3.72 billion.

The deal for the FanDuel stake was structured as a 10-year option that expires in December 2030, Fox said in a statementBloomberg Terminal. The terms include 5% annual increases, which would make the ultimate cost higher, depending on when the option is exercised. FanDuel is majority owned by Irish bookmaker Flutter Entertainment Plc.