Endeavor Group Holdings, Inc. has entered into a $450 million management buyout agreement to sell its OpenBet and IMG ARENA businesses to “OB Global Holdings LLC,” with participation from Endeavor CEO Ariel Emanuel and OpenBet executives, including CEO Jordan Levin. The transaction comes as Endeavor prepares for its acquisition by private equity firm Silver Lake.
Earlier this year, the two businesses were integrated under the OpenBet banner to form a comprehensive global sports betting and data company.
“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,” Levin said in a press release.
He will continue as CEO following the transaction.
The transaction is still subject to customary closing conditions, including regulatory approvals from the relevant gaming authorities.
Silver Lake acquisition to close early next year
The sale comes as Endeavor prepares for its $13 billion acquisition, which is expected to close in the first quarter of 2025. The “held for sale” designation for OpenBet and IMG ARENA was first reported in Endeavor’s Q2 2024 results, suggesting the company was actively seeking a buyer for these assets within the year.
Silver Lake first announced the acquisition in April 2024.
“This is a very special partnership. Together, we have built and grown Endeavor from $350 million in annual revenue when we first invested in 2012 to nearly $6 billion in consolidated revenue today,” Egon Durban, co-CEO and managing partner of Silver Lake, said at the time. “Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports, and live events with bold vision.”
Company background
Established in 2009, Endeavor is a global sports and entertainment company based in Beverly Hills, California. The company is notably the majority owner of TKO Group Holdings, the result of a merger between the UFC and WWE that was officially completed in September 2023.
Its subsidiary, OpenBet, was founded in London in 1996. Endeavor acquired OpenBet from Light & Wonder (formerly Scientific Games) for $800 million in September 2022.
“Once again, we have positioned ourselves on the supply side of this industry, working directly with rights holders and sportsbooks to deliver everything from official data, and streaming feeds to betting ads and mobile apps,” commented Emanuel upon the deal.
OpenBet powers responsible betting and gaming entertainment for more than 200 market-leading operators worldwide, including U.S. customers like FanDuel, BetMGM, and PENN Entertainment. The company also has customers in Canada, the U.K., and Australia.
IMG ARENA came about in 2012 and delivers live streaming and data feeds for over 65,000 sporting events per year. The company is an official partner to UFC, PGA Tour, DP World Tour, EuroLeague, the NWSL, and others.
