(NEW YORK) — Daily fantasy operators DraftKings and FanDuel will not merge after all. The two companies announced Thursday that their planned merger is off, and that it’s the best plan going forward for both parties.
The two planned to merge in November, but the idea was scrutinized by the Federal Trade Commission and attorneys general from California and the District of Columbuia, who filed a suit back in June to block the merger. DraftKings and FanDuel seemed prepared to answer the complaint, filing legal briefs, until this announcement.
DraftKings CEO Jason Robins released a statement saying terminating the merger was in the best interest of everyone involved.
“We have determined that it is in the best interest of our shareholders, customers, employees, and partners to terminate the merger agreement and move forward as an independent company,” FanDuel CEO Nigel Eccles added in his statement. “There is still enormous, untapped market opportunity for FanDuel, and we will continue to execute our strategy to grow our business and further expand the fantasy sports industry.”
Eccles also added that he believed the two companies merging would have been beneficial and still does.
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