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Lachlan Murdoch, CEO of Fox Corporation, confirmed a strategic move to boost the option to acquire an 18.6% stake in sports betting giant FanDuel at the Goldman Sachs Communacopia and Technology Conference. Murdoch has highlighted the stake's $2.2 billion savings from the open market value, making the deal notable for being financially accurate. Historical context and financial framework: The revelation came as Goldman Sachs analysts valued FanDuel, owned by Flutter Entertainment, at around $35 billion. So the 18.6% stake Fox intends to acquire would be worth around $6.5 billion under normal market conditions. However, Murdoch said recent financial reports show Fox only expects to pay about $4.3 billion, which shows a significant financial advantage for the company. Fox's relationship with FanDuel dates back to Flutter's 2020 acquisition of Starz Group, essentially connecting Fox with FanDuel through an acquisition option linked to the original Starz Group. The option, which is priced up 5% annually, has been at the center of legal investigation, with the terms of the current contract confirmed by a decisive arbitrator's ruling in 2022. Murdoch also detailed the procedural steps Fox should take to complete the deal, primarily the process of obtaining a gaming operator license. The process is known to require thorough compliance with state regulations and extensive disclosure of private corporate information because it is complex. Murdoch has made clear his willingness to explore these regulatory areas, emphasizing his significant financial advantages, saying he will "not leave $2 billion on the table." Strategic transformation and audience engagement: As reported by Sportico, the decision to focus on FanDuel coincides with Fox's strategic pivot following the closure of Fox Bet, a less successful venture that previously partnered with Flutter. Murdoch plans to strengthen Fox's broadcasting capabilities and audience engagement strategy by ramping up its efforts at FanDuel. This stake in FanDuel is seen not just as a financial investment, but as a key component of Fox's broader audience engagement and content innovation strategy. While Fox will need up to six more years to activate its acquisition option for FanDuel, Murdoch's aggressive approach suggests a desire to move this acquisition quickly, potentially well ahead of the contract deadline. The urgency stems in part from favorable terms Fox and Flutter negotiated last year, when a mediator fixed the price of the stake acquisition at $3.7 billion and adopted a resolution commemorating it as a well-structured compromise, taking into account the agreed 5% annual increase.