Endeavor is selling OpenBet and IMG Arena to OB Global Holdings LLC in a management buyout backed by CEO Ari Emanuel and executives from OpenBet, including CEO Jordan Levin, for approximately $450 million.
The buyout, which will be financed through a mix of cash and debt, is a “necessary step” as part of the closing of majority owner Silver Lake’s $13 billion deal to take Endeavor private, the company said.
“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” Levin said in a statement. “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.”
OpenBet, which was acquired by Endeavor in 2022 for $800 million after being initially valued at $1.2 billion, powers 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.
Meanwhile, IMG Arena delivers livestreaming 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. These include the UFC Event Centre. Clients include UFC, MLS, PGA Tour, DP World Tour, USTA, EuroLeague, and the NWSL.
The two businesses comprised the company’s Data Sports and Technology segment, which were considered held for sale and presented as discontinued operations since August, when it announced that it was actively marketing the assets.
The deal is subject to customary closing conditions, including approvals required by applicable gaming regulatory authorities, and is conditioned on and expected to close immediately prior to the closing of the Endeavor take-private, which is on track to close by the end of the first quarter of 2025. During the sign-to-close period and after closing, Endeavor will continue to market IMG Arena for sale to a third-party purchaser.
Oakvale Capital LLP and The Raine Group acted as financial advisors to Endeavor.
In addition to IMG Arena and OpenBet, Endeavor entered into an agreement with TKO Group Holdings in October for the company to acquire Professional Bull Riders, On Location, and IMG in an all-equity transaction valued at $3.25 billion.
Following that transaction’s closing, which is expected in the first half of 2025 and subject to customary closing condition and regulatory approvals, Endeavor is expected to own approximately 59% of TKO. The acquisition of IMG does not include businesses associated with the IMG brand in licensing, models, and tennis representation, nor IMG’s full events portfolio.
Endeavor also revealed it is reviewing a possible sale of certain events within its portfolio, including but not limited to the Miami Open and Madrid Open tennis tournaments, and art platform Frieze. No definitive timetable has been set for completion of this review process, and there is no assurance that the review will result in any specific action.
