In a moment of coming together, Fox and Flutter seemed to be satisfied following an arbitration decision from New York‘s Judicial Arbitration and Mediation Services (JAMS) group.
The dispute stems from a deal that originated in late 2020, whereby Fox gained an option to acquire an 18.5% stake in FanDuel. As part of the deal, the parties agreed to opt into binding arbitration, which is how this dispute ended up at JAMS as opposed to a New York courthouse.
A breakdown took place in April 2021, prompting Fox to initiate the arbitration provision contained within the deal. The dispute centered on FanDuel’s value for exercising the acquisition option. Ultimately, the arbitration decision sets FanDuel’s value as of December 2020 at $20 billion, plus a 5% annual escalator calculation.
The decision clears the path for both Fox and FanDuel (and its parent company, Flutter) to move forward.