Flutter Entertainment Share Discussion Threads

[solarman2013] 06/11/2022 16:53

We are in a race with a winning horse. FOX is powerful. Flutter too. Fan Duel as well. All start with an F. no coincidence. ;)

[ahmedt1810] 06/11/2022 16:31

I believe Fox will move forward with the option, but they will first need to execute the merger of Fox and NewsCorp in order to so. Fox alone can’t make a $4.1B cash payment in full without raising capital (super expensive) or merger. And they certainly will not want Flutter to IPO before they exercise their option. Hence the remaining ruling - they want some control the timing of IPO happens, and to make sure it does happen.

[ahmedt1810] 06/11/2022 16:12

Agree that FD valuation is fair, considering flutter and some analysts believed FD valuation was north of $35B in 2021. Arbitration result landed in the middle between what flutter likely wanted ($35B) and what Fox wanted ($11B). If Fox were to decide to exercise the option, it would likely be late 2023, after they sort out the Fox/NewsCorp recombination, remaining IPO ruling, and prior to next 5% escalator in Dec 2023. It would make it easier for Fox to gain support from their shareholders and investors if FD continued to perform well and flutter along with peer valuations increased. Also,I would expect Fox will only move forward with the option if Flutter agrees to IPO. I doubt Fox is interested in Flutter’s non-US business wouldn’t want to be tied to Flutter as a whole.

[solarman2013] 06/11/2022 16:09

There is a point where FOX needs to work out a deal with the leading sports betting company in america, that has even launched its own streaming shows.

[pughman] 06/11/2022 15:45

The $4.1bn valuation of the Fox stake, considering the growth of FD in the last 2 years is fair. I don't expect Fox in the near future to make this payment. Indeed, judging by the tone of the Fox post ruling statement, I foresee further shenanigans on their part.

[ahmedt1810] 06/11/2022 14:26

I think $35B is conservative based on FD valuation from this ruling, since FD represents approx 1/3 of Flutter. Reasonable discounted valuation would be $45B given market conditions. The stock should immediately see a jump, but investors will still be cautious to view the FD ruling valuation as accurate, since there will be doubt if Fox will exercise and the valuation was based on 2020 when the market conditions were drastically different. The whole market has repriced significantly downwards since then. Additionally, DraftKings valuation doesn’t help with their current market cap at $5B. It begs the question, is FD really worth 4x more than DK or is DK simply undervalued? My view is the FD valuation is reasonable and DK is undervalued. I think Flutter, DK, and other peers will rise on Monday based on this recent news.

[solarman2013] 06/11/2022 13:57

It is definitely in their interest to make peace and work together. If Flutter Market Cap is currently $23B, and FD was just valued at $20B itself, then I suspect we are in for a huge jump in public price in the coming months when you consider all of the combined properties of Flutter and its global growth prospects. Shall we say $35B combined? Meaning an immediate 50% in share price. I think that’s actually conservative. Thoughts?

[ahmedt1810] 06/11/2022 13:30

Great valuation for flutter. It will be interesting to see if Fox decides to exercise the option. My guess is yes, based on their strong interest to integrate sports betting and their recent announcement to explore recombining their FOX and News Corp companies back together. While Fox shareholders are not in favor of Fox recombining Fox and News Corp, I think the Fox owners believe the combined scale would be necessary to fund the FanDuel acquisition option(especially now at this ruling price) and maximize the potential value of their investment. It will be a long road before Fox makes a decision, as they would likely need get their shareholders on board with both the recombination and FanDuel investment.

Flutter Market Cap: $23B
Fox Market Cap (FOX): $15.7B
News Corp Cap (NWS): $9.6B
Combined Fox and News Corp: $26B

Either way flutter is in a great position, but it would better for Flutter if Fox exercises the option. The stock would rise significantly since the FD valuation would be realized and is essentially the same as as the whole company. Additionally, a strong partnership with media and sports betting is certainly valuable, especially when both party’s interests are truly aligned. Flutter and FOX could be a real powerhouse if they are able to establish a strong healthy partnership.

[solarman2013] 06/11/2022 13:29

The arbitration isn’t over. The ruling on the IPO issue will only be known beginning of 2023 or if they come to agreement. There is no room for appeal and both have signed to this.

[blue59] 06/11/2022 12:57

As if that has ever deterred a Murdoch. 🤔

[solarman2013] 06/11/2022 01:07

No appeal planned. Did you not read how fox spun this into a win. They would look like fools

[djderry] 05/11/2022 22:33

This is my second largest investment (second to Burford Capital),it's panning out very much as expected.Not worried about the shareprice on Monday,but in a few years,as the States continue to open up,the sky's the limit!

[foreverfore] 05/11/2022 21:52

Great news but do not rule out Fox appealing (yes I know it's binding but there is always a hole) as a way to negotiate a settlment.

[solarman2013] 05/11/2022 18:55

I'm not sure that a deal won't happen. It is actually in both orgs favour to work together. one is a media giant the other a gaming giant. Media needs gaming and gaming needs media.

[merism] 05/11/2022 18:32

Great result for flutter. I doubt that fox will pay up, so hopefully Flutter will keep 95 per cent of the Fanduel business until the IPO.

[solarman2013] 05/11/2022 18:23

Hope That pop happens because if we are worth that today, imagine when the market in general turns around?

[vraetorian] 05/11/2022 18:15

Thestarabove :: I wouldn't be surprised to see a pop up to 130-136

[vraetorian] 05/11/2022 15:22

That's an interesting question, and worth calculating for the entire group this weekend.
Furthermore, if the intention for the Fandual IPO was to validate a proper value for Fandual... Now that the courts have provided a strong basis for it's current value on their own, do we need to waste money,time and effort for something thats already been achieved by non bias independant source?

Lastly, Flutter is more than Fandual... pokerstars is starting to play a bigger part in North America, and I can see other verticals being introduced to the market there. Might as well just place the entire company on a proper exchange rather than piecing it out one by one.

[solarman2013] 05/11/2022 14:20

CD lutter has to keep up the media blast to play it as their win, which it is. The fact that FOX is attempting to say that they won is hilarious. From $11B valuation to $20B valuation in ruling. Go flutter go! They wouldn’t IPO until later in 2023 when valuations for IPO rose again anyways and the $ keep accruing if Fox doesn’t agree an IPO strategy. The stock will rise substantially. If FD alone is worth $20B, what is the entire group worth?

[thestarabove] 05/11/2022 13:54

how much do you think the stock will rise on monday

[the white house] 05/11/2022 13:49

Bizarre, Fastback struck a deal to get paid early and were happy to take an offer to do so. Fox had an agreed % and date. Arbitration has taken a year to sort out what could have taken an hour. Good to see Fox now have to cough up an extra 200m (& counting) for the year delay. Now what are Flutter going to do with this lovely huge pile of cash

[vraetorian] 05/11/2022 00:30

Great! Flutter got the valuation it wanted from the ruling. Media will always try to spin this one way or another. Numbers don't lie.

"As of 4 November 2022 the Option price is $4.1bn made up of the $3.7bn exercise price for 18.6% of FanDuel plus the 5% annual carrying value adjustment. "

Supplemental issue that remains is the IPO::

1) "The remaining matter before the tribunal is whether and, if so, under what conditions FOX is entitled to participate in an IPO of a parent company of FanDuel, should one occur. Flutter has agreed that it will not proceed with any potential IPO, if at all, until the tribunal has resolved this remaining matter or both parties have reached an agreement on the matter. A binding decision from the arbitrator on this point is expected in early 2023."

[solarman2013] 04/11/2022 23:18

Not quite so fast.

hxxps://www.flutter.com/news-and-insights/press-release/arbitrator-finds-in-favour-of-flutter-and-values-fanduel-at-20bn/?dm_i=7BO6,1CWP,K9IW,49DT,1

[macarona] 04/11/2022 22:56

Verdict out

hxxps://www.marketscreener.com/amp/quote/stock/FLUTTER-ENTERTAINMENT-PLC-60731439/news/Fox-says-arbitration-court-affirms-its-option-to-acquire-stake-in-FanDuel-42212304/

[vraetorian] 04/11/2022 18:47

DKNG Earnings Nov 4th (Reported:: -0.62 Estimated:: -0.965)