Endeavor considering selling OpenBet and IMG Arena ahead of go-private deal
The company originally closed upon its deal with OpenBet in 2022 for a cost of $1.2bn, now valued at $800m.
During its Q2 2024 earnings conference call, Endeavor stated that the company has put businesses in its sports data and technology sectors up for sale. The company has begun to market both IMG Arena and OpenBet, characterizing the businesses as discontinued operations in its earnings report.
Endeavor acquired OpenBet in 2022 in a deal originally valued at $1.2bn, but officially closed at $800m. IMG Arena is the company’s sports data business.
The motivation to sell both businesses comes after Endeavor announced its take-private deal with Silver Lake in April 2024, a deal the company values at $13bn. As part of the transaction, Endeavor said that it would seek to sell off many assets, though its core business and stake in TKO Group Holdings would be excluded.
“TKO and PBR benefited from strong consumer demand and engagement during the quarter, and we continued to drive growth in our representation segment,” Endeavor CEO Ari Emanuel said according to multiple reports.
“We remain focused on delivering for our clients and partners and maintaining momentum throughout the business as we work toward the close of our take-private transaction with Silver Lake.”
The company also added that both businesses will continue operating normally until any transactions have been finalized. The take-private deal with Silver Lake is expected to close during the first quarter of 2025.
TKO Group, the parent company of WWE and UFC, is not part of the Endeavor-Silver Lake transaction and will remain a publicly traded company according to reports.
Total revenue for Endeavor during Q2 2024 was reported to be $1.75bn, a 34.1% increase from the prior year period. Endeavor did experience a net loss of $253.8m for Q2 2024, however, including $408.9m recorded for discontinued operations.
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