Endeavor has announced plans to sell its sports betting technology company OpenBet and sports data business IMG Arena, while both entities will continue their operations as usual during the search for a buyer. The news was disclosed during Endeavor’s Q2 results on August 8, with the company indicating that the assets are "held for sale," suggesting a deal is likely within the next year.
This move comes as Endeavor prepares to finalise its $13 billion sale to private equity firm Silver Lake, expected to close in the first quarter of 2025. Silver Lake, which already holds a significant stake in Endeavor, will acquire the remaining shares, marking one of the largest private equity privatisation deals in over a decade.
OpenBet, which Endeavor acquired in September 2022 for approximately $800 million, was initially seen as a strategic addition to capitalise on the growing sports betting market. At the time of the acquisition, Endeavor CEO Ariel Emanuel highlighted the potential synergies between OpenBet and IMG Arena, which was integrated into the OpenBet business in February 2024. The integration was followed by a strategic review aimed at maximising the potential of the combined operations.
In response to the sale announcement, OpenBet CEO Jordan Levin expressed confidence in the company's future, emphasising its recent growth and innovative track record. He noted that OpenBet had expanded its global customer base by over 40% in the past year, attributing this success to Endeavor's support.
"Endeavor has been a great platform to accelerate our strategy, as demonstrated by our impressive growth," Levin said. "As we build on this solid foundation, I’m excited about what the future holds for OpenBet and confident that we will continue to innovate and excel, regardless of changes in ownership."
Endeavor also reported strong financial results for Q2, with revenue reaching $1.8 billion, a nearly 40% increase year-on-year. The Owned Sports Properties segment was a major contributor, generating $894.1 million in revenue, driven largely by Endeavor's acquisition of World Wrestling Entertainment (WWE) in September 2023, which added $457 million to the quarter's revenues. Despite the revenue growth, Endeavor reported a net loss of $253.8 million for the quarter, largely due to $408.9 million in costs related to discontinued operations.
Comments