DraftKings and FanDuel, fantasy sports tech companies, agreed to a merger that is expected to be finished as early as this year, with financial details not being disclosed. Bringing together 2 important fantasy sports innovators is going to better serve players while also reducing costs and increasing operational efficiency. The main focus of the merger is to develop brand new features, products, contest formats and loyalty programs while also increasing social functionality.
The new combined company will be able to heavily invest in the strategic partnership. Partners will gain access to an increase in customers and products since the user base and the league relationships of FanDuel and DraftKings are going to be combined. At the moment you can see different promos for both, like at and . This merger is going to combine partnerships, products and services, with the best ones being brought forward for better customer support.
Jason Robins, DraftKings CEO, declared that the company was always passionate about offering great experiences for customers. He went on to declare that the merger is going to advance the goal of the company to offer a sports entertainment platform that is “transformational”. The combined company is the one that is going to accelerate innovation pace and the customer experience is going to be richer, more than each company could have done alone.
Although DraftKings and FanDUel are quite new on the market, their rapid evolution was visible in the past months. Resources will be streamlined and combined so even communications with the government to create standard regulatory frameworks is going to be accelerated. This combined company will try to better service the current US fantasy player base, which reached 57 million last year.
Nigel Eccles, FanDuel CEO, said that combining the two companies is a great opportunity for innovations and disruption in the sports industry. Both of the firms did a lot so far but according to Eccles, the new business will be able to offer much more, be appealing to a wider range of users and various surprises.
The merger will have Jason Robins as the new company CEO while Nigel Eccles is set to become the Chairman of the board. 3 directors from both companies are going to form the new board of directors, with one extra independent director. Co-headquarters will be opened in Boston and New York. Regulatory approvals and customary closing conditions are going to influence the final merger but everything was set up.
What does all this mean for fantasy sports? It is expected that the very best of the services of the two companies are going to be kept while those that are not working well or are not popular will be removed. Just as with every merger, the main focus is put on developing brand new services and products, while also improving customer service and interaction. No words were mentioned about the different promotions that will appear, what will be kept and what will not be kept from what the two fantasy sites currently offer.