OpenBet’s Price Tag Plummets $400M for Endeavor

Endeavor Group entered an agreement in September 2021 to acquire sports betting company OpenBet for $1.2 billion — but that number fell significantly on Thursday.

The revised deal will be worth $800 million, according to an SEC filing, with a shift in the makeup of the deal. Light & Wonder, OpenBet’s current owner, will receive $750 million in cash and $50 million in stock.

• The original deal was worth $1 billion in cash, with the rest in Endeavor shares.
• The acquisition is expected to close by the end of the year.

The filing did not provide a reason for the price drop, but deteriorating market conditions and falling stocks have affected valuations. Light & Wonder has fallen 45% from the announcement of the deal. Endeavor has fallen 28%.

The deal will combine OpenBet with IMG Arena, Endeavor’s existing sports betting unit, which works with more than 470 sportsbook brands. The division provides live streaming and on-demand virtual sports products for clients including the PGA Tour, Ryder Cup, UFC, MLS, and Wimbledon.

OpenBet focuses on licensed customers and regulated gaming markets. In September, Endeavor CFO Jason Lublin said the combined entity would form a new, fourth reporting line starting with $340 million in annual revenue.

New Name

At the time of the acquisition news, Light & Wonder was called Scientific Games. After  the Endeavor acquisition last year and the $6.05 billion sale of its lottery business to Brookfield Business Partners, Light & Wonder rebranded from Scientific Games earlier this year.