Finance
Endeavor to sell OpenBet, IMG Arena for about $450 million to management-led group
Global Banking & Finance Review®
Company
(Reuters) – Endeavor Group will sell its OpenBet and IMG Arena
(Reuters) – Endeavor Group will sell its OpenBet and IMG Arena businesses to management-led group OB Global backed by Hollywood power broker Ari Emanuel for about $450 million, the sports and entertainment company said on Monday.
The deal, which includes participation from OpenBet executives including CEO Jordan Levin, is a “necessary step” for the closing of Endeavor’s take-private deal, it said.
Private equity firm Silver Lake in April had struck a $13 billion deal to take Endeavor private. The deal is expected to close by the end of the first quarter of 2025.
OB Global will finance the deal through a mix of cash and debt, Endeavor said. Levin will continue to lead OpenBet, a sports betting entertainment firm, after the deal closes.
This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” Levin said.
Endeavor said it would continue to market IMG Arena for sale to a third-party purchaser prior to and after closing the deal.
IMG Arena delivers live streaming and data feeds for more than 65,000 events across multiple sports.
The transaction is dependent on and expected to close immediately prior to the closing of Endeavor’s take-private deal.
Raine Group and Oakvale Capital were the financial advisers to Endeavor.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Maju Samuel)
Private equity refers to investment funds that buy and restructure companies not listed on public exchanges. These investments aim for high returns through strategic management and operational improvements.
A management buyout occurs when a company's executives purchase a controlling stake in the company, often with the help of external financing, to take control of its operations.
Market expansion is a growth strategy where a company seeks to increase its market share by entering new markets or increasing sales in existing markets.
Product innovation involves developing new or improved products to meet customer needs and enhance competitive advantage, often leading to increased sales and market share.
A financial advisor is a professional who provides guidance on financial planning, investments, and wealth management to help clients achieve their financial goals.
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