Flutter to stall FanDuel IPO until 2022 as Amy Howe becomes interim CEO
The departure of CEO Matt King combined with Fox Corp arbitration proceedings appear to have forced a rethink at the FTSE 100 operator
Flutter Entertainment will postpone its planned stock market float and spin off of FanDuel until 2022, according to The Telegraph.
The broadsheet suggests the firm has decided against pursuing an IPO in 2021 following the departure of FanDuel CEO Matt King in May and to allow for the conclusion of its legal row with Fox Corp.
King will exit FanDuel later this month for a position at sports e-commerce giant Fanatics.
Flutter has yet to confirm a replacement for King, with a permanent appointment expected in the Autumn.
FanDuel president Amy Howe has today been installed as interim CEO of the business alongside her current role.
Howe joined FanDuel Group in February 2021 from Live Nation Entertainment, where she most recently served as COO of Ticketmaster.
King will leave the business on 16 July following a short transition period.
Commenting on the appointment, Flutter Entertainment CEO Peter Jackson said: “Matt leaves the business in a position of strength and we wish him well for the future.
“The appointment of Amy, working alongside the wider FanDuel leadership team, will support the key focus on growing the business and retaining our number one position in the US market.”
Flutter’s plan to IPO and spin off of the FanDuel business first surfaced in March, with shareholders frustrated over the low valuation of the business in comparison to nearest rival DraftKings.
Shares in DraftKings have skyrocketed since the business went public via a SPAC merger in April 2020, an upward trajectory that FanDuel is keen to replicate.
Responding to these rumours, the firm said it “regularly evaluates its organisational and capital structure” but said it had made no decision on whether to proceed with an IPO.
However, Flutter was hit by another setback in April when sports betting partner Fox Corporation instigated arbitration proceedings against the firm over its scheduled purchase of an 18.6% stake in FanDuel.
Under the terms of the agreement between the two parties, Fox can purchase the stake based on a “fair market valuation” of the business as at July 2021.
However, Fox has disputed this, claiming the valuation should be based on a December 2020 valuation, when Flutter bought a 37.2% share in the FanDuel business from FastBall Holdings.
The New York Judicial Arbitration and Mediation Service is still considering the lawsuit.
Shares in Flutter Entertainment fell by 1.28% in early trading on the London Stock Exchange to £12.74p.