Hopes of a daily fantasy sports giant went out the window on Thursday when DraftKings and FanDuel collectively announced that plans of a potential merger had been terminated.
The decision to terminate the merger came roughly a month after the Federal Trade Commission said they would block any potential union in court to prevent a digital monopoly. Although other DFS companies exist, DraftKings and FanDuel make up the vast majority of the market.
“We have determined that it is in the best interest of our shareholders, customers, employees and partners to terminate the merger agreement and move forward as an independent company,” FanDuel CEO Nigel Eccles said in a statement published by the New York Daily News.
The merger would have made sense for each company as part of a continued battle for legalization around the country, but there was fierce opposition over the fear of a monopoly. Accordingly, each company will now remain independent.
“We believe it is in the best interests of our customers, employees, and investors to terminate our agreement to merge with FanDuel and move forward as a separate company,” DraftKings CEO Jason Robins said in a similar statement. “This will allow us to singularly focus on our mission of providing the most innovative and engaging interactive sports experience imaginable, forever changing the way fans connect with teams and athletes worldwide.”
The two companies announced last year the plans for a potential merger, but will now focus solely on customer satisfaction and the competition will ideally yield better products for the customer base.