While it looks for a buyer, OpenBet and IMG will continue operating as usual, the operator said in its Q2 results on 8 August. ‘Held for sale’ suggests a sale is highly likely within a year.
The news comes as Endeavor prepares for its $13bn sale to private equity company Silver Lake to close in Q1 of 2025. Silver Lake will acquire 100% of the outstanding Endeavor shares it didn’t already own, in what it claims is the largest private equity privatisation investment deal in over a decade.
OpenBet was acquired by Endeavor in September 2022 for approximately $800m. At the time Endeavour CEO Ariel Emanuel said OpenBet would help the group to capitalise on tailwinds in sports betting.
“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,” he said.
In February 2024 Endeavor integrated IMG Arena into the OpenBet business and then initiated a strategic review of the IMG Arena business to maximise its potential.
In response to the sale announcement, OpenBet CEO Jordan Levin said he was confident OpenBet would maintain its track record of innovation and excellence regardless of its ownership structure.
Levin noted OpenBet had grown its global customer base by over 40% in the last year.
“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,” Levin said.
“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 Q2 revenue reaches $1.8bn
Endeavour recorded $1.8bn in Q2 revenue, a year-on-year increase of almost 40%. Owned Sports Properties generating $894.1m in revenue during the quarter, up 162.9% year-on-year.
The segment’s growth was powered by its September 2023 acquisition of World Wrestling Entertainment (WWE). WWE contributed $457m to Q2 revenues.
Endeavor reported a net loss of $253.8m for the quarter, including $408.9 million relating to discontinued operations.
Original article: https://igamingbusiness.com/finance/endeavor-plans-sell-openbet-img-arena/
