Published on: November 12, 2024, 02:38h.
Last updated on: November 12, 2024, 02:38h.
Endeavor Group Holdings, Inc. (NYSE: EDR) has announced the sale of its IMG Arena and OpenBet sports betting businesses to a group led by CEO Ari Emanuel for $450 million.
The buyer, OB Global Holdings LLC, consists of CEO Ari Emanuel and OpenBet CEO Jordan Levin, among others. The $450 million purchase will be financed with a combination of cash and debt. The sale of IMG Arena and OpenBet is part of Endeavor’s go-private deal with Silver Lake Ventures, valued at $13 billion and announced in April.
The transaction is a necessary step for the proposed Endeavor take-private by Silver Lake. It is subject to customary closing conditions and approvals from gaming regulatory authorities, and is expected to close just before the Endeavor take-private deal,” according to a statement.
Endeavor will continue to market IMG Arena for sale to another buyer, indicating that OpenBet is the desired asset for OB Global.
OpenBet Sold at a Lower Price Than Purchased
Endeavor is selling OpenBet for far less than the $1.2 billion it paid in September 2021 to acquire it from Scientific Games. The sale price was reduced to $800 million, resulting in approximately $700 million in after-tax proceeds to the company now called Light & Wonder. The sale to OB Global is for just over half of the original purchase price.
This buyout allows the management group led by Emanuel to continue expanding the market and innovating products,” said Levin in a press release. “Our group is confident in OpenBet’s future due to its premium products, talented team, and strong foundation following a period of growth.”
The purchase of OpenBet by the Emanuel-led group could be a smart move as the sports betting industry undergoes a technology race. OpenBet’s client list includes BetMGM, DraftKings, FanDuel, Paddy Power, PointsBet, Super Group, and William Hill, among others.
The fate of IMG Arena is still uncertain. Potential buyers could be sports betting data providers Genius Sports (NYSE: GENI) and Sportradar (NASDAQ: SRAD), but no interest has been indicated yet.