On Friday, ESPN reported that the merger of the two companies was “imminent,” with public confirmation expected as early as this week. The merger reportedly gained new momentum following the two companies’ dual $6m settlements last week with New York’s Attorney General over deceptive marketing practices.
DraftKings CEO Jason Robins will run the new DraftKings/FanDuel entity as CEO if and when a deal gets done, according to a source familiar with the discussions. FanDuel CEO Nigel Eccles would become chairman of the board. Bloomberg reported that a potential management decision had been made.
The sticking point in negotiations has been the question of which founder would lead the new company. The people, who asked for anonymity because the talks aren’t public, didn’t say why Robins is expected to lead instead of Eccles. The merger plan also leaves open the possibility of hiring an outside executive to lead the new venture, they said.
According to the people, the new company will likely seek to raise money shortly after the merger, taking advantage of what investors in both companies have said for some time: It makes financial sense for DraftKings and FanDuel to pool their resources instead of spending lavishly competing for the same customers.