Endeavor Announces Management Buyout of OpenBet and IMG ARENA
Endeavor Group Holdings (NYSE: EDR) has announced the sale of OpenBet and IMG ARENA to OB Global Holdings in a management buyout backed by Ariel Emanuel, with participation from OpenBet executives including CEO Jordan Levin. The transaction is valued at approximately $450 million, financed through cash and debt. During and after closing, Endeavor will continue marketing IMG ARENA for third-party sale. The deal is a necessary step for Endeavor's proposed take-private transaction by Silver Lake and is subject to gaming regulatory approvals.
Endeavor Group Holdings (NYSE: EDR) ha annunciato la vendita di OpenBet e IMG ARENA a OB Global Holdings in un'operazione di buyout gestionale sostenuta da Ariel Emanuel, con la partecipazione di dirigenti di OpenBet, incluso il CEO Jordan Levin. La transazione è valutata approssimativamente $450 milioni, finanziata attraverso contante e debito. Durante e dopo la chiusura, Endeavor continuerà a commercializzare IMG ARENA per la vendita a terzi. L'accordo è un passo necessario per la proposta di Endeavor di un'operazione di privatizzazione da parte di Silver Lake ed è soggetto ad approvazioni regolatorie nel settore dei giochi.
Endeavor Group Holdings (NYSE: EDR) ha anunciado la venta de OpenBet e IMG ARENA a OB Global Holdings en una compra de gestión respaldada por Ariel Emanuel, con la participación de ejecutivos de OpenBet, incluido el CEO Jordan Levin. La transacción está valorada en aproximadamente $450 millones, financiada a través de efectivo y deuda. Durante y después del cierre, Endeavor continuará comercializando IMG ARENA para la venta a terceros. El acuerdo es un paso necesario para la propuesta de Endeavor de una transacción de privatización por parte de Silver Lake y está sujeto a las aprobaciones regulatorias de juego.
엔데버 그룹 홀딩스 (NYSE: EDR)가 OpenBet와 IMG ARENA를 OB 글로벌 홀딩스에 매각한다고 발표했습니다. 이 거래는 아리엘 에마누엘의 지원을 받는 관리 매수 거래로, OpenBet의 CEO 조던 레빈을 포함한 임원들이 참여했습니다. 거래 가치는 약 $4억 5천만 달러로 현금과 부채를 통해 자금을 조달했습니다. 종료 기간 동안 및 종료 이후에도 엔데버는 IMG ARENA를 제3자 판매를 위해 계속 마케팅할 것입니다. 이 거래는 실버 레이크에 의한 엔데버의 민영화 거래 제안에서 필요한 단계이며 게임 규제 승인을 받아야 합니다.
Endeavor Group Holdings (NYSE: EDR) a annoncé la vente d'OpenBet et d'IMG ARENA à OB Global Holdings dans le cadre d'un rachat par les dirigeants soutenu par Ariel Emanuel, avec la participation des dirigeants d'OpenBet, y compris le PDG Jordan Levin. La transaction est évaluée à environ 450 millions de dollars, financée par des liquidités et des dettes. Pendant et après la clôture, Endeavor continuera à commercialiser IMG ARENA pour une vente à des tiers. Cet accord est une étape nécessaire pour la proposition d'Endeavor de transaction de privatisation par Silver Lake et est soumis aux approbations réglementaires en matière de jeux.
Endeavor Group Holdings (NYSE: EDR) hat den Verkauf von OpenBet und IMG ARENA an OB Global Holdings in einem Management-Buyout, das von Ariel Emanuel unterstützt wird, angekündigt. An der Transaktion nehmen auch Führungskräfte von OpenBet, einschließlich CEO Jordan Levin, teil. Der Transaktionswert beträgt etwa 450 Millionen US-Dollar, finanziert durch Bargeld und Schulden. Während und nach dem Abschluss wird Endeavor IMG ARENA weiterhin für den Drittverkauf vermarkten. Der Deal ist ein notwendiger Schritt für das von Silver Lake vorgeschlagene Kontakt zur Privatisierung von Endeavor und unterliegt den behördlichen Genehmigungen im Glücksspielbereich.
- Transaction value of $450 million improves company's cash position
- Strategic alignment with take-private transaction by Silver Lake
- Potential additional value from separate IMG ARENA sale
- Divestment of significant business assets OpenBet and IMG ARENA
Insights
This
The valuation appears reasonable given OpenBet's market position serving over 200 operators. The mixed financing structure of cash and debt provides flexibility while maintaining operational continuity through Jordan Levin's continued leadership. The temporary marketing arrangement for IMG ARENA indicates potential additional value realization through a separate sale.
This transaction streamlines Endeavor's structure ahead of the Silver Lake privatization, potentially reducing regulatory complexity and focusing the business model. For investors, this represents a clear step toward completing the larger take-private deal, though the specific impact on the final share price consideration remains to be determined.
The management buyout of OpenBet presents significant strategic implications for the betting technology landscape. OpenBet's established position powering 200+ operators globally makes this a notable transaction in the gaming sector. The retention of the current management team, particularly CEO Jordan Levin, ensures operational stability and continuation of existing growth strategies.
The backing by Ariel Emanuel adds credibility to the buyout structure and suggests potential synergies with broader entertainment industry relationships. This move could enable more agile decision-making and faster product innovation in the rapidly evolving betting technology space, free from public market constraints. The transaction positions OpenBet to potentially accelerate its market expansion and product development initiatives.
Levin 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.”
Under the terms of the transaction, OB Global Holdings will acquire the businesses for approximately
During the sign-to-close period and after closing, Endeavor will continue to market IMG ARENA for sale to a third-party purchaser.
OpenBet powers responsible betting and gaming entertainment for more than 200 market leading operators around the globe. Following close of the transaction, Levin will continue to lead the business as CEO.
The transaction is being pursued, and is a necessary step, for the closing of the proposed Endeavor take-private by
Oakvale Capital LLP and The Raine Group acted as financial advisors to Endeavor.
About Endeavor
Endeavor (NYSE: EDR) is a global sports and entertainment company, home to many of the world’s most dynamic and engaging storytellers, brands, live events, and experiences. The Endeavor network specializes in talent representation through entertainment agency WME; sports operations and advisory, event management, media production and distribution, and brand licensing through IMG; live event experiences and hospitality through On Location; full-service marketing through global cultural marketing agency 160over90; and sports data and technology through OpenBet. Endeavor is also the majority owner of TKO Group Holdings (NYSE: TKO), a premium sports and entertainment company comprising UFC and WWE.
About OpenBet
OpenBet is a world leader in sports betting entertainment. With over 25 years’ experience and a passion for innovation, OpenBet’s modular range of technology, content and services is entrusted by the globe’s biggest sports betting brands, lotteries, casinos and tribal operators. It is a leading business-to-business sports betting partner in the
OpenBet is part of Endeavor, a global sports and entertainment company.
The company has earned industry recognition through multiple award wins recently, including ‘Sports Betting Supplier’ at EGR North America Awards 2024, ‘Multi-Channel Supplier’ at the EGR B2B Awards 2024, and ‘Sportsbook Platform Supplier’ at the SBC North America Awards 2024.
About IMG ARENA
IMG ARENA delivers live streaming and data feeds for more than 65,000 events across a wide range of sports annually, as well as for on-demand virtual sports products and front-end solutions including the UFC Event Centre. Clients include UFC, MLS, PGA Tour, DP World Tour, USTA, EuroLeague, and the NWSL. IMG ARENA is part of OpenBet, a world leader in sports betting entertainment. The two Endeavor-owned businesses were integrated under the OpenBet banner in 2024 to form a global sports betting and data business.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Endeavor intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including the potential sale of Endeavor’s sports data and technology businesses described herein, the expected post-closing OpenBet management team and the expected timing of consummating the proposed sale. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees and involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from what is expressed or implied by the forward-looking statements, including, but not limited to important factors discussed in Part I, Item 1A “Risk Factors” in Endeavor’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as any such factors may be updated from time to time in the Company’s other filings with the SEC, including, without limitation, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, accessible on the SEC’s website at www.sec.gov and Endeavor’s Investor Relations site at investor.endeavorco.com. Forward-looking statements speak only as of the date they are made and, except as may be required under applicable law, Endeavor undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Website Disclosure
Investors and others should note that Endeavor announces material financial and operational information to its investors using press releases, SEC filings and public conference calls and webcasts, as well as its Investor Relations site at investor.endeavorco.com. Endeavor may also use its website as a distribution channel of material Company information. In addition, you may automatically receive email alerts and other information about Endeavor when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investor.endeavorco.com.
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Investors: investor@endeavorco.com
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Source: Endeavor Group Holdings
FAQ
What is the value of Endeavor's (EDR) OpenBet and IMG ARENA sale?
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