New York arbitrator sides with Flutter in legal battle with Fox

Sports betting giant Flutter revealed on Monday that a New York arbitrator had sided with it in its FanDuel spat with Fox.

Flutter said Fox had secured the right to purchase an 18.6% stake in FanDuel, ending a more than a year-long legal battle between the two.

However, the price Fox will be required to hand over for the stake will be based on a valuation of $20.0bn, according to a ruling from New York arbitrator, and not an implied valuation of $11.2bn that it had been fighting for.

If Fox chooses to exercise its option, it will be forced to fork out no less than $3.72bn. The exercise price was also said to be subject to a 5% annual compounding carrying value adjustment up to the date of any potential exercise by Fox prior to December 2030.

Flutter chief executive Peter Jackson said: "Today's ruling vindicates the confidence we had in our position on this matter and provides certainty on what it would cost Fox to buy into this business, should they wish to do so."

Reporting by Iain Gilbert at Sharecast.com