DraftKings and FanDuel To Merge

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Fantasy sports sites DraftKings and FanDuel have agreed to merge, according to three sources familiar with the situation.

Talks between the two companies have been ongoing for months, and the final arrangement is still subject to change. But here is the basic outline, per documents that have been distributed to company investors:

• DraftKings CEO Jason Robins will be CEO of the combined company, while FanDuel CEO Nigel Eccles will serve as chairman.
• Each company's existing investors will receive three board seats, while there also will be an independent director. This basically reflects how this is effectively a 50/50 merger from an equity perspective.
• No specifics yet on various integration issues like branding, with the two companies expecting a full review by U.S. anti-trust authorities.
• The merger does not include any new equity investment into the combined company.

Representatives for both Boston-based DraftKings and New York-based FanDuel declined to comment. A formal announcement is expected to come within the next week.

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