Daily fantasy sports companies DraftKings and FanDuel are set to merge into one.
The transaction is expected to close in 2017. Financial terms of the deal were not disclosed.
“We have always been passionate about providing the best possible experience for our customers and this merger will help advance our goal of building a transformational global sports entertainment platform,” DraftKings CEO Jason Robins said in a media release. “Joining forces will allow us to truly realize the potential of our vision, and as a combined company we will be able to accelerate the pace of innovation and bring a richer experience to our customers than we ever could have done separately.”
“Being able to combine DraftKings and FanDuel presents a tremendous opportunity for us to further innovate and disrupt the sports industry,” added FanDuel CEO Nigel Eccles. “While both companies have accomplished much already, this transaction will create a business that can offer a greater variety of offerings, appealing to new users, including the tens of millions of season-long fantasy players that haven’t yet tried our products.”
Robins will be chief executive officer at the newly combined company. Eccles will become chairman of the board.
In addition to those two, the board will be composed of three directors from DraftKings, three directors from FanDuel and one independent director.
Technically, both FanDuel and DraftKings also offer weekly and season-long sports fantasy contests, though they’re mostly known for the short stuff.
The combination should offer “operational efficiencies and cost savings that are expected to result from the merger,” driving “a greater focus on developing new products and features, including more variety in contest formats, loyalty programs, enhanced social functionality and ancillary sports-oriented content and experiences,” per the press announcement.
The new company will be co-headquartered in New York and Boston. This transaction is subject to customary closing conditions and regulatory approvals.