Endeavor is seeking buyers for its OpenBet and IMG Arena businesses, both of which are categorized as "held for sale."
The operator reported in its quarterly earnings on August 8 that, while searching for buyers, OpenBet and IMG will continue to operate as usual. The "for sale" status indicates a high probability of being sold within one year.
This news comes as Endeavor is preparing to sell itself to private equity firm Silver Lake for $13 billion, with the transaction expected to complete in the first quarter of 2025. Silver Lake will acquire 100% of the circulatory shares of Endeavor that it does not already own, alleged to be the largest private equity privatization deal in over a decade.
OpenBet was acquired by Endeavor for approximately $800 million in September 2022. At that time, Endeavor CEO Ariel Emanuel stated that OpenBet would help the group capitalize on the tailwinds of sports betting.
He stated: "Combining our IMG ARENA sports data and content business, we will strive to create and unleash meaningful value for our rights holders and sports betting clients, helping to provide the most compelling products for sports fans globally."
In February 2024, Endeavor will integrate IMG Arena into the OpenBet business, then initiate a strategic review of IMG Arena to maximize its potential.
In response to the announcement of the sale, OpenBet CEO Jordan Levin said he believes that regardless of the ownership structure, OpenBet will maintain its record of innovation and excellence.
Levin noted that OpenBet's global customer base grew by more than 40% last year.
Levin stated: “Endeavor is an excellent platform for us to accelerate and implement our newest strategies, as evident from the significant growth in our global customer base over the past year. As we build this very solid foundation, I am very excited about the future of OpenBet and believe that regardless of how our ownership structure may change, we will maintain a record of innovation and excellence.”
Endeavor's second-quarter revenue reached $1.8 billion
Endeavour's revenue for the second quarter amounted to $1.8 billion, an increase of nearly 40% year-over-year. The owned sports properties segment of this quarter earned $894.1 million, up 162.9% year-over-year.
This division's growth has been boosted by the acquisition of World Wrestling Entertainment (WWE) in September 2023. WWE contributed $457 million to the revenue for the second quarter.
Endeavor reported a net loss of $253.8 million for the quarter, with $408.9 million associated with discontinued operations.
