Key points:
- Endeavor agrees to sell OpenBet and IMG Arena to OB Global Holdings in a $450m management-led buyout
- The transaction is part of Endeavor’s planned acquisition by private equity firm Silver Lake
- OpenBet CEO Jordan Levin will continue in his role after the sale
Endeavor Group Holdings has reached an agreement to sell OpenBet and IMG Arena to OB Global Holdings for approximately $450m.
The OB Global-led management buyout is part of the larger process of Endeavor’s transition to private ownership under Silver Lake.
The deal involves a combination of cash and debt financing and is expected to be finalised before the closing of Silver Lake’s acquisition of Endeavor.
OB Global, backed by Endeavor CEO Ariel Emanuel and involving OpenBet executives including CEO Jordan Levin, is taking ownership of OpenBet's sports betting and gaming assets.
Levin stated: “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.”
Good to know: Levin will remain CEO after the transaction’s close, maintaining his leadership role at OpenBet.
While the sale includes both OpenBet and IMG Arena, Endeavor will continue to market IMG Arena for potential acquisition by a third party during and after the closing period.
Regulatory approval from relevant gaming authorities is required for the transaction, in addition to standard closing conditions.
The divestment of OpenBet and IMG Arena aligns with Endeavor’s announced plan to go private.
Silver Lake, Endeavor’s longtime investment partner, first made the take-private proposal in April 2024. The deal, valued at $13bn, could reach up to $25bn when accounting for consolidated enterprise value, making it one of the most substantial private equity investments in the media and entertainment sector in recent years.
Silver Lake’s acquisition offer includes a 55% premium on Endeavor’s October 2023 stock price.
Oakvale Capital and The Raine Group acted as financial advisors for Endeavor on the sale of OpenBet and IMG Arena.
