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  1. #1
    The Buzz's Avatar
    The Buzz is offline GPWA Gossip Hound
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    Default Report: Most FanDuel employees will get zero money from Paddy Power Betfair deal

    According to documents acquired by Legal Sports Report that detail the two companies’ business combination, the biggest losers in the acquisition of daily fantasy sports company FanDuel by Paddy Power Betfair appear to be the company’s founders and common shareholders, who are getting zero dollars from the transaction. But FanDuel executives could make tens of millions of dollars.

    From the article:

    That means the DFS site’s founders — including former CEO Nigel Eccles — and most employees appear as if they will get nothing from the agreement. That list would also appear to include co-founders Lesley Eccles, Tom Griffiths, Rob Jones and Chris Stafford. All have moved on from the company.

    The deal between PPB and FanDuel announced in the spring appears to be close to closing, if it hasn’t already.

    The summary of the transaction is where common shareholders learned they were out of luck.

    According to the document, the “aggregate preference amount payable with respect to the A Preference Shares is $543,255,315.40 plus £11,658,295.57 pounds.”

    Majority shareholders used their “drag along right” to force minority shareholders to accept the deal. The dragging shareholders here were early-stage investors KKR and Shamrock Capital, who led two of FanDuel’s biggest rounds of investment.

    Another document showed that current FanDuel executives could make tens of millions of dollars, including current CEO Matt King, Chief Technical Officer Robin Spira, Chief Legal Officer Christian Genetski, Chief Financial Officer Andy Giancamilli, EVP of Corporate Strategy David VanEgmond and Chief Marketing Officer Mike Raffensperger:
    Read the entire summary of the transaction and the rest of the article here:

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  3. #2
    Malikbhai is offline Public Member
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    This is what happens when venture money comes into play. The founders of the company lose their command; if the initial agreements are not tight. The reason Mark Zuckerberg still controls facebook is because of the ironclad preferred shares he's got despite owning less than 30%.
    Steve jobs did not have the same agreement, and was kicked out of the company he founded by the CEO he hired.

  4. #3
    Vargoso's Avatar
    Vargoso is offline Private Member
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    I'm guessing the guys on this list are not that mad:

    For purposes of the Golden Parachute Provisions, the estimated aggregate amount of Payments the Disqualified Individuals could receive in connection with the Transaction is $6,186,814 for Mr. Genetski, $3,517,833 for Mr. Spira, $4,957,685 for Mr. Giancamilli, $11,342,688 for Mr. King, $2,601,338 for Mr. VanEgmond, and $1,693,375 for Mr. Raffensperger.
    Rakeback and professional services for poker players -

  5. #4
    econfox is offline Public Member
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    I know that the contract provides what must be done. However, if you are buying a business and want to retain the people who built it. Then there can be some additional compensation added that is not mandated. I just think starting off like this is bad business if you want to retain good employees or if you want to attract new talent to the company. If I was thinking about working for them and read this then I would have second thoughts about it.

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