Last week it was a done deal. Fantasy Drafts, one of the younger fantasy portals and provider of DFS have agreed to purchase Fantasy Aces and thus create a new DFS company able to compete with the announced DFS giant that is to be created when Draft King and FanDuel merger realizes. However, the epilogue was quite unexpected and it happened only a few days after Fantasy Aces officially announced the acquisition. Fantasy Draft decided not to follow through with the deal.
Many DFS companies are looking to merge their assets in order to tackle the high costs of operation and attract more players to a single website instead of competing with each other. As a result of this last year we saw the merger of two biggest DFS companies FanDuel and Draft King, as they decided to join forces instead of competing with each other. Being that these two were the leading players on the market, the newly formed company is expected to be the DFS leading operator. However, the rest of the DFS operator are strongly contending for the second place and apparently following the example of the mentioned two companies.
Fantasy Draft have came close to signing an acquisition deal under which they would purchase the players database of Fantasy Aces, a DFS provider that have already merged with Fantasy Feud earlier this year. This meant that three providers would form one and cover a larger number of players than they would have been able to attract separately.
On January 25th Fantasy Aces have frozen the activity, as well as user accounts on their website for the purposes of merging and transition of players’ accounts. It was stated on Fantasy Aces website and the process was expected to be finalized in 3-5 days. All was being arranged to make the smoothest transition possible for the players. In the case of players who had accounts on both websites, their credits would be transferred to Fantasy Draft account, while in the case of players who only had account on Fantasy Aces, a new Fantasy Draft would be opened for them. Everything seemed to be going as planned and the statements from both sides spoke about the benefits of the merger.
A few days later, an unexpected twist happens. Fantasy Draft announces that they are “unable” to continue with the merging process. Here’s the full statement announced on their website and media channels:
“Unfortunately, because of issues identified during our due diligence, we are unable to purchase the assets of FantasyAces. We will continue to provide the best possible daily fantasy experience for our users, and are committed as always to putting our Players First.”
As for Fantasy Aces, all you can see on their website is the following message: “An update coming shortly, please stand by.” This means that the user accounts are still frozen as well as their funds. There are no comments from the Fantasy Aces team.
Just like online casinos, fantasy sports portals need to be chosen carefully so you don’t find yourself with frozen funds or worse. As always check our Gambling Directory for the best fantasy sites, bingo rooms, online casinos and online poker rooms.