FanDuel, DraftKings Merger Plans Terminated After US Antitrust Legal Challenge

Daily fantasy platforms FanDuel and DraftKings have nixed plans of a merger after the proposed consolidation was challenged by the United States Federal Trade Commission.  

According to Reuters, via Fortune, the FTC opposed the merger because it claimed the single entity would constitute a monopoly since it "would control more than 90 percent of the U.S. market for paid daily fantasy sports contests."

On Tuesday, FanDuel CEO Nigel Eccles told Recode's Tony Romm his company was "evaluating options" and had not decided whether it would continue to pursue a union with DraftKings. 

However, a statement released Thursday confirmed FanDuel had abandoned those plans. 

"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," Eccles said, per TechCrunch.com's Fitz Tepper. "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."

According to Tepper, a merger would have been beneficial for the two sides because it would have allowed them to more efficiently lobby for the legalization of daily fantasy sports and cut down on advertising costs.