FanDuel ‘in talks’ with DraftKings over merger

Edinburgh-based fantasy sports site FanDuel and its US rival DraftKings are discussing a merger, according to Bloomberg.com.

Investors in both companies, which are privately held, have been pushing for a tie-up for some time, Bloomberg’s sources said.

“The companies offer nearly identical products and spend a lot of money competing with each other; they also face the same legal challenges that threaten their business across the US. No final transaction has been agreed, and the deal may still fall apart,” according to the site.

DraftKings and FanDuel are both valued at $1bn.

FanDuel has raised $363m in funding from investors including Google Capital, Time Warner/Turner Sports, Comcast Ventures, Edinburgh-based Pentech Ventures and London’s Piton Capital.

Founded in 2009, it offers one-day fantasy sports contests in America and Canada and this summer is launching fantasy football in the UK.