Endeavor is shedding more divisions as it goes private.
The talent and entertainment giant will sell two companies—sports betting company OpenBet and sports data provider IMG Arena— to the buyout group OB Global Holdings LLC under the plan announced after markets closed on Monday. The sale was termed “a necessary step” toward Endeavor’s bid to become private with the financial backing of the private equity firm Silver Lake.
It’s the second major selloff by Endeavor within the last month. On Oct. 24, Endeavor struck a $3.25 billion deal to sell On Location, Professional Bull Riders, and IMG to TKO Group Holdings, the parent company of WWE and UFC that is majority-owned by Endeavor.
“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” said OpenBet CEO Jordan Levin, who will be part of the management takeover. “Our group is extremely confident in OpenBet’s future considering the premium product offering, superior talent, and solid foundation we already have in place following a strong period of business growth.”
The transaction will be financed “through a mix of cash and debt,” according to Endeavor’s statement.
In 2022, Endeavor closed a deal to acquire OpenBet for $800 million from Scientific Games in September 2021. Founded in London in 1996, OpenBet provides technology and other services to sportsbooks and counts FanDuel, Penn Entertainment (ESPN’s betting partner) and BetMGM among its U.S. customers.
IMG Arena, launched in 2012, delivers live streaming and data feeds to more than 65,000 events annually. Earlier this year, Endeavor announced IMG Arena would be folded into OpenBet. Endeavor said Monday that it “will continue to market IMG Arena for sale to a third-party.”
Endeavor Group Holdings was up about 4% to $30 per share in after-hours trading.
