Draft sells itself to Irish betting powerhouse Paddy Power Betfair
May 12, 2017 9:32 AM
by Robert Mann
Draft, a three-year-old daily fantasy app that has raised $5.6 million in venture funding, has sold itself to Irish betting powerhouse Paddy Power Betfair for $19 million in cash.
Yahoo Finance reports Paddy Power Betfair (PPB), which emerged from the mega-merger of Paddy Power and Betfair last year, acquired Draft although the new company has fewer than 1 million users and is not yet profitable.
PPB indicates an additional $29 million “cash consideration” will potentially “become payable” to Draft over the next four years depending on the performance of the business, according to Yahoo Finance.
Some industry observers believe the move was precipitated by a desire by the company to access the multi-billion dollar fantasy sports business.
This is PPB’s first U.S. fantasy sports acquisition, according to Yahoo Finance and there’s speculation it’s tied to recent momentum towards a broader legalization of sports betting in the United States.