Paddy Power Betfair is acquiring fantasy sports company FanDuel.
FanDuel was valued at $1 billion just three years ago. Now, the company is being sold for less than half that amount.
According to documents that detail the deal’s specifics, FanDuel’s original founders might not make any money from the sale.
Selling a company is usually cause for celebration, but for the founders of fantasy sports company FanDuel, the moment is likely to be bittersweet.
The nine-year-old company, which was once one of Britain’s most closely watched startups, was said to be valued at over $1 billion just three years ago. Now, it’s valued at less than half that amount by the company that’s buying it, Dublin-based bookmaker Paddy Power Betfair.
According to documents first reported by Legal Sports Report that detail the specifics of the deal, FanDuel is now valued by its investors at around $465 million.
FanDuel’s current valuation is about $50 million more than the total amount of funding it’s received since 2009: A whopping $416 million from investors including private equity firms Shamrock Capital and Kohlberg Kravis Roberts.
Now, those investors are cutting FanDuel’s founders a raw deal: As majority shareholders, they’re exercising their “drag along …read more
Source:: Businessinsider – Technology