Endeavor, a prominent talent, and media holding company, has announced its intention to sell two of its key assets, OpenBet and IMG Arena. The process of divesting these businesses began in the second quarter, and the search for potential buyers is currently underway.
Endeavor prepares to divest amidst major changes
As part of its strategic move, Endeavor has chosen to exclude OpenBet and IMG Arena from its financial reports when presenting quarterly and annual results to investors. This indicates a clear intention to separate these businesses as they pursue the sale. Additionally, Endeavor is reportedly exploring the possibility of divesting other assets as well.
Before initiating the sale process, Endeavor had consolidated its tech and data operations under the OpenBet brand. This move came just two years after Endeavor acquired OpenBet from Light & Wonder for a significant $1.2 billion. The acquisition was initially intended to enhance Endeavor’s ambitions in the sports betting sector, but market shifts have led to a change in strategy. This shift may also be influenced by Silver Lake, a key player in Endeavor’s decisions.
Despite the impending changes, OpenBet CEO Jordan Levin remains confident in the company’s future, asserting that it will continue to play a vital role in the sports betting industry and deliver strong performance.
In its second-quarter update, Endeavor outlined its plans for the sale and indicated that OpenBet and IMG Arena are now classified as “Held for Sale.” The company’s Sports Data & Technology segment is also listed under discontinued operations. However, specific details about potential buyers remain undisclosed, and the search continues.
OpenBet’s journey through multiple ownerships
OpenBet has seen several ownership changes over the years. Originally founded in 1996 as Orbit Technology, the company was acquired by NDS Group in 2000 and rebranded as OpenBet in 2011. It was then sold to Vitruvian Partners before being acquired by NYX Gaming in 2016. Despite its frequent changes in ownership, OpenBet has maintained a strong reputation and a solid client base, including industry giants like DraftKings, Paddy Power, PointsBet, Super Group, FanDuel, BetMGM, and William Hill.
As Endeavor continues to navigate its own going-private deal, the outcome of the sale of OpenBet and IMG Arena remains to be seen. Any significant developments will be shared with the public as they become available.
