Endeavor to sell OpenBet and IMG Arena to OB Global in $450m MBO deal
US media giant Endeavor is to sell its sports gambling and tech businesses OpenBet and IMG Arena to OB Global Holdings in a US$450m management buyout backed by Endeavor CEO Ari Emanuel.
Ari Emanuel
The deal, in which OpenBet executives including CEO Jordan Levin are participating, is a “necessary step” for the closing of Endeavor’s take-private deal with tech-focused private equity company Silver Lake, the company claims.
Under the terms of the transaction, OB Global Holdings will acquire the businesses through a mix of cash and debt. During the sign-to-close period and after closing, Endeavor will continue to market IMG Arena for sale to a third-party purchaser.
The transaction is subject to customary closing conditions, including approvals required by gaming regulatory authorities.
Oakvale Capital and The Raine Group acted as financial advisors to Endeavor.
LA-based Endeavor is a holding company for talent and media agencies and was founded in 2009 after the merger of the William Morris Agency and Endeavor Talent Agency.
This March, Endeavor revealed it was to go private once again after agreeing to be acquired by Silver Lake. After completion of the deal next year, Endeavor will not be listed on any public markets.
That deal does not include UFC and WWE parent company TKO Group, which officially launched last year after Endeavor spun off the companies into a new publicly traded entity. TKO Group will remain public.
Endeavor bought sports betting company OpenBet for US$800m in 2022. IMG Arena delivers live streaming and data feeds for 65,000 sporting events annually.
Jordan Levin, CEO of Open Bet, said: “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.”
