Endeavor sells OpenBet, IMG Arena for $450 million in Ari Emanuel-led management buyout
As a seasoned cinephile who has followed Endeavor’s journey since its inception, I must say this latest move feels like watching a thriller unfold. The company, known for its entertainment and sports empire, is now selling off pieces of itself, much like an actor shedding layers to reveal a surprising twist.
Endeavor, located in Beverly Hills, revealed on Monday its plans to offload OpenBet, a sports betting company, through a management buyout that is supported by CEO Ari Emanuel. This means the leadership team of the firm will purchase it.
In my enthusiasm, I couldn’t help but share the news that I recently learned: I’m excited to announce that Endeavor is set to part ways with OpenBet and IMG Arena, both of which will be transferred to OB Global Holdings LLC in a deal worth approximately $450 million. This figure is significantly lower than what Endeavor initially paid for OpenBet two years ago.
The action arises as Endeavor is making preparations for going private, led by its major shareholder, the private equity firm Silver Lake, approximately three years since it started public trading.
In the past, leaders at Endeavor have voiced dissatisfaction, stating that their company’s stock price doesn’t match the worth of its assets. These assets are a combination of businesses in entertainment and sports, which they believe complement each other and contribute significantly to the company’s overall value.
In 2022, Endeavor acquired OpenBet from Light & Wonder Inc. for approximately $800 million. At that time, Emanuel stated that this acquisition would allow us to seize the opportunities presented by the rapidly growing sports betting market and pave the way for shaping the future of sports entertainment in this sector.
Endeavor said it will “continue to market IMG ARENA for sale to a third-party purchaser.”
In my perspective, this management buyout empowers us to carry forward our ambitious plans for wider market penetration and groundbreaking product development. As the CEO of OpenBet, I am optimistic about our company’s future due to our top-tier offerings, exceptional talent, and robust foundation that has been established after a successful phase of business expansion.
Levin will continue to lead OpenBet after the deal closes, Endeavor said.
Last month, Endeavor said it would sell three of its businesses — Professional Bull Riders, hospitality business On Location and global sports marketing agency IMG — to WWE and UFC owner TKO Group Holdings in an all-equity deal valued at $3.25 billion.
Additionally, Endeavor is considering the possibility of selling off the Miami Open, Madrid Open (both being ATP Masters 1000 and WTA 1000 tennis tournaments), as well as the art organization Frieze, for potential buyers.
Endeavor stock closed at $28.90, down 0.17% on Monday.
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2024-11-12 02:01