By 
Flutter Entertainment on Monday said an arbitrator has determined that the value of U.S. sports betting company FanDuel as of Dec. 2020 was $20 billion.
That establishes the current value for the option Fox
FOX,
-0.68%
has to buy an 18.6% stake, which is subject to a 5% annual compounding carrying value adjustment.
Flutter
FLTR,
+4.00%
FLTR,
+3.48%
says this equates to a $22 billion valuation for FanDuel today, and a cost of $4.1 billion for Fox to acquire an 18.6% stake.
Flutter shares rallied 5% in early London trade.
FanDuel rival DraftKings
DKNG,
-27.82%
has a $9.5 billion market cap and has dropped 58% this year. Analyst at UBS point out that gambling peers have de-rated significantly since Dec. 2020, when Flutter bought a 37% stake in FanDuel from a consortium at an implied valuation of $11.2 billion.
The UBS analysts also note the tribunal still has yet to rule on whether Fox can participate in a FanDuel IPO, should one occur.
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