RE:RE:RE:RE:RE:Morning MathWe have to consider that this is a long term move to increase their ability to execute across channels and platforms. We also are now being led by a much more market-savvy leadership in terms of public markets. We have all (most of us anyways) complained about how poorly the stock price reflects the true value of Stars. Well, we can't do that anymore.
In my estimation, combining Fan Duel, PokerStars and FoxBet is the real play here. Plus in Australia, SportsBet and BETEASY get to be combined as well, bringing market share way up. If anything, Flutter will have to dispose of retail shops in the UK, which I suspect it is happy to do so as the world is moving to mobile and online. We should also see consolidation of overheads in the UK, USA and Australia, which is reflected in their statement of 140GBP million of synergies. Stars was already on its way to 70GBP million of synergies in its purchase of SKYBET and BETEASY last year, so the accretive nature simply of overheads will not yet be reflected in the stock price.
I am tempted to sell 50% on the merger and keep 50% in Flutter as this market is only going up. And now imagine if PokerStars is fueled by FanDuel and FoxBet in its casino business....
This is all good. yes, its not at the high of $52 we had last year when we bought SKY, yet somehow I think we will surpass that within two years. Rafi was NEVER a true pubic accompany CEO and he's back at the COO position which is his true calling. We have a stellar board and a stronger team.
This is only good.