FanDuel IPO delay likely as Matt King departs

Flutter Entertainment’s proposed IPO of FanDuel in the US could be delayed after FanDuel Group CEO Matt King decided to step down. King first joined FanDuel in October 2014 as CFO, spending two years in the role. He then became CEO in November 2017, eventually overseeing Flutter’s US brands including Fox Bet, PokerStars and TVG under the FanDuel Group umbrella. He oversaw the transition of the business into legalised sports betting following the repeal of PASPA in May 2018 before it was consolidated into the wider Flutter Entertainment group. FanDuel has since become the leading online sports betting operators in the US and was valued at $11.2m as of December 2020, when Flutter increased its stake in the business from 57.8% to 95%. However, analysts have since suggested that FanDuel could be worth as much as $40bn if spun out as a separate asset, a strategy which Flutter has made clear it is keen to pursue. Flutter was expected to commence an IPO of FanDuel later this year, although the exact timing is now unclear. In a statement confirming King’s departure, Flutter alluded to a potential delay in this process. “Whilst Matt’s departure will affect the timing of any potential US listing, the board will continue to keep this option under review,” Flutter said. “It has been a privilege to lead FanDuel over the last four years through what has been an incredibly exciting period for the company,” King said. “With FanDuel well positioned for the next chapter of its growth and always an entrepreneur at heart, now is the time for me to take on new opportunities as the next step in my career. “I want to thank Peter [Jackson] and the whole Flutter team for their unwavering support since acquiring FanDuel. “I have no doubt that the business will continue to go from strength to strength and I wish all of my colleagues the very best for the future as they pursue the next stage of growth,” he added. King will remain with the FanDuel Group business until a successor is found. Addressing the departure of King, Flutter Entertainment CEO Peter Jackson said: “I would like to take this opportunity to thank Matt for his considerable contribution in helping to make FanDuel the US market leader it is today. “FanDuel has achieved so much in the three years since PASPA was repealed and that is due in no small part to Matt’s leadership and the strong team built around him. “While we will be sorry to see him leave, he leaves the business in great shape. We are starting the process of looking for a new CEO for FanDuel and we remain focused on maintaining our leadership position in the US market,” he added. Another potential obstacle to the IPO is Flutter’s ongoing dispute with Fox Corporation over the previously agreed purchase of an 18.6% stake in the FanDuel business. Fox Corporation has filed a lawsuit with authorities in New York demanding that its purchase option of this stake be based on FanDuel’s value as of December 2020, when Flutter extended its ownership stake in the business by 37.2%. However, Flutter is only prepared to offer Fox a stake in FanDuel based on its value as of July 2021, which could be substantively more expensive. In April, Flutter said it would “vigorously defend” its interests after enacting an arbitration process in the US courts.