Endeavor to sell OpenBet and IMG Arena for $450 million as part of strategic reshuffle  

Endeavor has agreed to sell its OpenBet and IMG Arena businesses to OB Global Holdings in a management buyout (MBO) valued at approximately $450 million. The deal, announced on Monday, involves key participation from Endeavor CEO Ariel Emanuel and several OpenBet executives, including CEO Jordan Levin. The transaction will be financed through a combination of cash and debt.

The primary focus of the sale is OpenBet, a global sports betting technology provider that works with over 200 market operators worldwide, including major names like FanDuel, PointsBet, ESPN Bet, OPAP, and Sky Bet. 

Should the deal close as expected, Levin will remain at the helm of OpenBet as CEO. Endeavor has stated that IMG Arena will continue to be marketed for sale to third parties throughout the sign-to-close period and beyond.

“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” Levin said. “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 deal is subject to customary closing conditions, including approvals from certain gaming regulatory authorities. Oakvale Capital LLP and The Raine Group are advising Endeavor on the transaction.

The decision to sell follows Endeavor’s planned take-private deal with Silver Lake. In April, Silver Lake, a technology investment firm, agreed to acquire Endeavor in a deal valued at $13 billion. This acquisition will see Silver Lake take full control of Endeavor, with the deal expected to close in Q1 2025. 

The sale of OpenBet and IMG Arena is in line with Endeavor’s restructuring efforts, which have involved streamlining its portfolio of assets. Endeavor initially acquired OpenBet in September 2022 for $800 million, a purchase that was delayed and came in $400 million under the original agreed price. The sale is also part of Endeavor’s decision to divest from certain businesses and focus on its core operations.

In addition to OpenBet and IMG Arena, Endeavor is exploring the sale of other assets. The company recently initiated a review of certain events within its IMG portfolio, including the Miami Open and Madrid Open tennis tournaments, as well as its art platform Frieze.

This announcement follows Endeavor’s release of its Q3 financial results, which showed a 66.6% increase in revenue to $2.02 billion for the three months ending September 30. Despite this growth, Endeavor’s net loss widened significantly, from $117 million to $186.3 million, due to a rise in operating expenses and financial costs. 

The losses were further exacerbated by the fact that OpenBet and IMG Arena were classified as discontinued operations, as Endeavor seeks to divest from these businesses.