In what was a bit of a surprise announcement on Wednesday, FanDuel CEO Matt King has decided to step down. As of now, there is no clear date but the move is expected to happen in the near future. The company was expected to head towards a public listing in the United States stock market via an IPO but now those plans might be put on hold.
Flutter Entertainment Announces Departure
Flutter Entertainment, which is the parent company of FanDuel Sportsbook, broke the news of King’s departure via an e-mail on Tuesday evening. Of course, the note was positive as they thanked King for navigating the company as they went into uncharted waters following the legalization of sports betting in the United States.
King held the position of CEO, helping morph the company from a fantasy-first operator with Daily Fantasy to full-fledged online sports betting and gaming company.
King has agreed to help FanDuel Sportsbook in their search for his replacement, so it’s pretty clear that the parting is amicable. However, it wasn’t what any outsiders were expecting. Flutter Entertainment’s stock fell 3% following the news.
What Does This Mean For FanDuel’s IPO?
FanDuel was expecting to follow the path blazed by competitor DraftKings Sportsbook and head for an initial public offering (IPO) to get onto the stock market. However, they’ll have to find a new CEO before they move forward with that plan.
“I would like to take this opportunity to thank Matt for his considerable contribution in helping to make FanDuel the US market leader it is today,” Flutter CEO Peter Jackson told Legal Sports Report. “FanDuel has achieved so much in the 3 years since PASPA was repealed and that is due in no small part to Matt’s leadership and the strong team built around him. While we will be sorry to see him leave, he leaves the business in great shape. We are starting the process of looking for a new CEO for FanDuel and we remain focused on maintaining our leadership position in the US market.”
In terms of their plans with the IPO, he also shed some light on the matter.
“As previously announced, the Flutter Board has been assessing the potential merits of listing a small stake in FanDuel in the US,” said Jackson. “Whilst Matt’s departure will affect the timing of any potential US listing, the Board will continue to keep this option under review.”
