Endeavor CEO Emanuel Acquires OpenBet, IMG Arena in $450M Management Buyout
Endeavor Group Holdings (NYSE: EDR) is selling its IMG Arena and OpenBet sports betting businesses to OB Global Holdings LLC for $450 million. The buyer group is led by Endeavor CEO Ari Emanuel and OpenBet CEO Jordan Levin.
Ari Emanuel smiling with lanyard
The sale is part of Endeavor's larger go-private transaction with Silver Lake, valued at $13 billion. The deal will be financed through a combination of cash and debt, with closing subject to gaming regulatory approvals.
Notably, Endeavor is taking a significant loss on OpenBet, which it purchased from Scientific Games (now Light & Wonder) for $800 million in 2021. The current $450 million sale price represents nearly a 44% discount from that acquisition.
OpenBet, which has changed ownership six times since its 1996 founding, provides technology solutions to major sports betting operators including BetMGM, DraftKings, FanDuel, Paddy Power, and William Hill. Despite the discount, the acquisition could prove strategic as sports betting technology becomes increasingly competitive.
Meanwhile, Endeavor continues to seek a separate buyer for IMG Arena, with potential suitors including sports betting data providers Genius Sports (NYSE: GENI) and Sportradar (NASDAQ: SRAD), though neither has expressed public interest.
"This management buyout allows us to continue executing our vision for increased market expansion and product innovation," said Levin, highlighting the company's confidence in OpenBet's future growth potential.
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