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Traders could be getting a new way to get in on the action over online sports betting.
What Happened: Ireland-based
Flutter Entertainment Plc (OTC: PDYPY) is considering a spinoff in the US with an IPO among the options for its company FanDuel, Bloomberg and CNBC have reported.
Flutter in December announced that it was paying $4.2 billion to increase its stake in FanDuel to 95%. But pressure is mounting from investors who expected that to be the lead-up to a spinoff of FanDuel, CNBC reported. Flutter shares have been trading at a discount to competitor DraftKings, to investors frustration.
Fox Corporation s (NASDAQ: FOX) Fox Sports could complicate or slow any potential deal. Fox Sports holds a 2.5% stake in Flutter and has an option to buy an 18.5% stake in FanDuel in July.