Endeavor is seeking buyers for its OpenBet and IMG Arena businesses, as both are in a "held for sale" status.
The operator stated in its second quarter results that during the search for buyers, OpenBet and IMG will continue to operate as usual. "For sale" indicates a high likelihood of being sold within a 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 Endeavor's outstanding shares that it does not already own, reportedly the largest private equity privatization investment in over a decade.
OpenBet was acquired by Endeavor in September 2022 for approximately $800 million. At the time, Endeavor CEO Ariel Emanuel stated that OpenBet would help the group capitalize on the tailwinds of sports betting.
He said, "Combining our IMG ARENA sports data and content business, we will strive to create and unlock meaningful value for our rights holders and sports betting clients, helping to deliver the most compelling products for sports fans worldwide."
In February 2024, Endeavor will integrate IMG Arena into the OpenBet business, then initiate a strategic review of the IMG Arena business to maximize its potential.
In response to the sale announcement, OpenBet CEO Jordan Levin expressed his belief 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 latest strategies, as evidenced by the significant growth of 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 second quarter revenue reached $1.8 billion, up nearly 40% year-over-year. Its owned sports properties generated revenue of $894.1 million this quarter, up 162.9% year-over-year.
This division's growth was aided by the acquisition of World Wrestling Entertainment (WWE) in September 2023. WWE contributed $457 million to the second quarter revenue.
Endeavor reported a net loss of $253.8 million for the quarter, of which $408.9 million was related to discontinued operations.
