Endeavor agreed to sell OpenBet and IMG Arena, its sports gambling and technology businesses, in a $450 million management buyout backed by Endeavor chief Ari Emanuel with participation from OpenBet CEO Jordan Levin and other execs.
The deal “is a necessary step” for the closing of the proposed Endeavor take-private deal with Silver Lake, expected to occur in the first quarter of 2025, the company said; Endeavor had announced that it was shopping the gaming-related businesses in August. Endeavor said the sale of OpenBet and IMG Arena is expected to close immediately prior to the closing of the Sliver Lake-Endeavor go-private pact.
Under the terms of the transaction, OB Global Holdings LLC will acquire OpenBet and IMG Arena for approximately $450 million, financed through a mix of cash and debt. During the sign-to-close period — and after closing — Endeavor said it will continue to market IMG Arena for sale to a third-party purchaser.
Levin said in a statement, “This management buyout allows us to continue executing our vision for increased market expansion and product innovation. 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.”
Endeavor closed its $800 million acquisition of OpenBet in 2022 (a deal originally valued at $1.2 billion). It positioned OpenBet as augmenting its IMG Arena business, which works with sportsbook brands to provide official livestreaming video and data feeds for thousands of events annually.
Today, OpenBet powers betting and gaming entertainment for more than 200 operators worldwide. Following close of the transaction, Levin will continue to lead the business as CEO. The management buyout is subject to customary closing conditions, including approvals required by applicable gaming regulatory authorities. Oakvale Capital LLP and the Raine Group acted as financial advisers to Endeavor.
