Endeavor moves to sell OpenBet and IMG Arena ahead of going private

Endeavor is seeking a buyer for its OpenBet and IMG Arena businesses, having placed them in a "held for sale" status. The company announced this decision as part of its Q2 financial results on August 8.

While Endeavor explores potential buyers, both OpenBet and IMG Arena will continue their operations as normal. The "held for sale" designation suggests that a transaction is expected within the next year.

This move comes as Endeavor prepares for a transition involving a $13 billion acquisition by private equity firm Silver Lake, scheduled to close in the first quarter of 2025. Silver Lake is set to acquire all outstanding Endeavor shares that it does not already hold, marking one of the largest private equity buyouts in over a decade.

Endeavor acquired OpenBet in September 2022 for approximately $800 million, aiming to leverage its capabilities to enhance its sports betting offerings. At the point of acquisition, Endeavor CEO Ariel Emanuel stated: "In combination with our IMG ARENA sports data and content business, we’ll look to create and unlock meaningful value for our rights holder and sportsbook customers, helping deliver the most compelling offerings for sports fans globally.”

In February 2024, Endeavor integrated IMG Arena with OpenBet and initiated a strategic review of IMG Arena to maximize its potential.

OpenBet CEO Jordan Levin stated: “Endeavor has been a great platform to accelerate and build on our most recent strategy, as demonstrated by the impressive growth in our global customer base over the course of the year

“As we build on this very solid foundation, I’m very excited about what the future holds for OpenBet and confident that we will maintain our track record of innovation and excellence regardless of future changes in our ownership structure.”

Endeavor's Q2 financial performance showed growth, with revenues reaching $1.8 billion, a nearly 40% increase from the previous year. The company’s Owned Sports Properties segment alone generated $894.1 million, driven by a remarkable 162.9% year-on-year growth. This surge was significantly influenced by the acquisition of World Wrestling Entertainment (WWE) in September 2023, which contributed $457 million to Q2 revenues.

Despite the revenue growth, Endeavor reported a net loss of $253.8 million for the quarter, including $408.9 million related to discontinued operations.