DraftKings Inc. and FanDuel Inc., the two biggest daily fantasy sports companies, are in talks about a merger.

Investors in DraftKings and FanDuel, which are privately held, have been pushing for a tie-up for some time.

The companies offer nearly identical products and spend a lot of money competing with each other; they also face the same legal challenges that threaten their business across the U.S.

Both companies were valued at more than $1 billion each approximately a year ago before fighting regulartors in several states.