Flutter Entertainment Share Discussion Threads

[vraetorian] 14/11/2021 19:30

Nice little dip. Don't mind if i do

[the white house] 12/11/2021 11:15

Ignorant post, you and the pathetic lawyers clearly do not understand marketing, databases & targeting criteria.A little knowledge is a dangerous thing, as you repeatedly demonstrate

[blue59] 12/11/2021 09:37

And no one will lose their job over it!!

[solarman2013] 11/11/2021 18:22

They will have to prove harm. Not going to happen .

[vraetorian] 11/11/2021 18:05

Ahmed, Comparing the two charts together, Flutters' price action directly correlates with the London Stock exchange

[booboobooboo111] 11/11/2021 18:05

Legal action could be taken against online casino Sky Vegas after promotional emails were sent to recovering gambling addicts, a law firm has said.

Sky Vegas, which is owned by Flutter UK&I, apologised last week after promotional emails were mistakenly sent to those who had opted out of betting correspondence.

Law firm PGMBM said it is exploring the possibility of bringing legal proceedings on behalf of up to 120,000 people who are believed to have been sent the promotional emails offering 'free online spins' despite asking not to receive betting correspondence.

[ahmedt1810] 11/11/2021 17:34

Flutter share price appears to be directly correlated to DKNG share price. It’s effectively 2x DKNG when comparing to PDYPY. DKNG clearly is driving the market price, regardless of flutter news.

[the white house] 11/11/2021 16:19

With regards to US value of FanDuel/Flutter BetWay are lining up as a SPAC launch which may give a read across or may be of interest anyway Reverse takeover of the BET thread has been executed, a bit SPAC like

[mip55] 11/11/2021 14:52

Thanks indeed Trictrac, it would be interesting to discover what the BOD now consider ' fair value '

[solarman2013] 11/11/2021 12:31

This may be a strategy to keep the price of flutter low and then offer to buy the whole thing . Dirtier things have happened. Flutter is vastly undervalued at this time.

[zwemnaar] 11/11/2021 12:18

Trictrac nailed it. No more explanation needed! The only reason to IPO was to have an actual market price in July for the valuation, now that argument has gone, I don't think they will seek it in the future.

[trictrac66] 11/11/2021 11:51

As I understand it, Fox have a 10 year option to buy c.18% of FD running from July 2021.

Fox want to pay a price based on the latest known market-struck valuation - being the Flutter/Fastball deal of 2020 which was struck on a FD value of c.$11bn. This was in fact very clearly stated to be a "discounted" valuation by Flutter at the time. This was supported by the fact that market value of FD's closest competitor, DK, was c.€20bn at this time.

Flutter, on the other hand, have consistently clearly stated (in several analyst calls in particular, and also various circulars) that this option exercise price should be based on the "fair market valuation" at the time the option is exercised. This valuation is to be determined by a process involving 2 or 3 investment banks giving an independent view.

(As an aside, this process may be seen as somewhat unpredictable - which is why, in my view, Flutter was considering IPO-ing a "small stake" of FD before July 2021 - so that a clear fair market valuation would exist. I personally can see no other strategic reason for Flutter to consider the IPO of a subsidiary - this would be highly unusual action for a listed company that does not need to raise funds. Once this dispute with Fox has settled, I don't think Flutter would or should sell any more of its stake via an IPO, even accepting that the US market may initially value the stake more highly than the UK market. Many others on this forum would disagree with me on this...).

You may or may not be right that the market valuation of FD is lower today than it was in July 2021. Certainly, the market cap of DK is lower c.€17bn and the market cap of Flutter is lower too. And so the dispute may be less material today, but it is still significant e.g. $1-2bn. It is a 10 year option so could be even more significant in the future. (I also do not know if Fox reserves the right/is obliged to exercise at July 2021 prices under the terms of the arbitration).

Separately, there is a second option which Fox have to buy 50% of FoxBet. I do not know the terms of this option strike price, but it is NOT a fair market value option. I recall that there is a small provision in the Flutter accounts e.g. €10m or less that covers Flutter's view of this out of the money liability.

[mip55] 11/11/2021 10:27

Ok thanks guys, but fair value would seem ( in my uneducated view ) to have declined over the interim period so surely FanDuel / FLTR are on shaky ground ?

[the white house] 11/11/2021 10:20

Indeed, Fastback wanted to cash in early and accepted huge discount to the ongoing price to draw it forward. Fox cannot demand the same price that was negotiated separately and this decision will favour Flutter. It is more than unfortunate that Flutter have not pointed out this Fastback discount with greater prominence, in fact not even mentioning it in the RNS that came out at the time on the topic

[the white house] 11/11/2021 10:14

There has been referenced somewhere a good while back, no idea where, that Flutter have voiced a view that the deal with Fox did/may not involve the whole of FanDuel but just a subsidiary part. This may well be the reason for legal discussions and could surprise to the upside if true or partly so. Separately, or not maybe, the fact that the Fox 18pc, Boyd 5pc and Fastback 7.5pc did/does all seem a lot to share around and the fact that it has been is proving not cheap to buy back in. With discussions ongoing both with Fox and Gambling Review, Flutter do seem to be preferring a negative outlook agenda which needs to be noted

[merism] 11/11/2021 10:00

Flutter paid a discounted rate in Dec 2020 to get up to 95%. Fox want the same discount. It's nothing to do with the share price of Flutter.

[mip55] 11/11/2021 09:46

Forgive my confusion but the dispute with Fox concerns the price to be paid for the 18.6% option that Fox have to purchase that portion of FanDuel .... Fox want to pay a value based on December 2020 share price but FLTR say they must pay 'fair value' ( which, incidentally, FOX state was never in the original contract) and want FOX to pay a figure based on July 2021 share price. Clearly FLTR hoped that part of FanDuel would have been IPOd by then and the valuation would have been much improved- but that IPO never happened and the share price is now lower than it was in December 2020.So - Please correct me if I've misinterpreted the situation but why are we going to expensive arbitration on this? Our share price is lower than it was in December 2020 and lower than in July 2021 so why can't we reach a sensible compromise and move on ?

[blue59] 11/11/2021 08:48

BLACK THURSDAY for my portfolio!!

[solarman2013] 09/11/2021 10:05

Fan duel will win the arbitration.

[tkamp] 09/11/2021 09:53

That just makes it all the more frustrating that FOX is throwing this tantrum. If FanDuel could IPO today at anywhere near DKNGs valution it would become crystal clear that FLTR is hugely undervalued

[tkamp] 09/11/2021 09:51

FanDuel is growing faster than DKNG (also in Q3) while its 50% bigger. Yet DKNG enterprise value is currently higher than all of Flutter. Either DKNG is hugely overvalued or FLTR is massively undervalued, its that simple

[the white house] 05/11/2021 16:46

Hardly bucking the trend 1.2bn down this year so far with a worse October to come, apart from last weekend with was much improved.Penn was due to portnoys action with 19 year olds in the sack more than company profitability

[ahmedt1810] 05/11/2021 14:08

Link to Fox Earnings Transcript - comment is at the end in response to the last question.

hxxps://apple.news/AUpaj-TbMSpWHP2P30T7Vnw