DraftKings and FanDuel, the two fantasy sports giants, have called off their proposed merger on Thursday, after a month long struggle with federal regulators who opposed and tried to block the merger. The Federal Trade Commission (FTC) objected to the merger arguing that the merger would create a monopoly with the company controlling more than 90 percent of the U.S market for daily fantasy sports.
The merger was halted by a federal judge last month with the trial pending scheduled for Nov. 21. The decision of calling off the merger was a clear win for the customers who have for years experienced benefits like favorable pricing and various innovations. All the benefits would likely have been lost if the merger was allowed.
On Thursday, the CEOs of both the companies announced they would be moving forward separately in the best interests of their customers, employees, and investors. While the FanDuel CEO expressed his views saying he still believes the deal would have been beneficial for clients and the company, while DraftKings CEO instead praised his company’s growth in a separate statement.