Endeavor, a sports media business that owns IMG Arena, has announced its acquisition of OpenBet for $750 million in cash and 2.3 million Class A shares totaling $50 million. This strategic move is part of the overall streamlining of Light & Wonder, formerly known as Scientific Games. In addition to selling OpenBet, Light & Wonder also sold its lottery arm to private equity group Brookfield Business Partners last October.
The sale of OpenBet follows the departure of Barry Cottle as Light & Wonder’s CEO, with Matt Wilson temporarily assuming the role until a permanent replacement is found. Wilson expressed optimism about the new direction of the business, as it can now focus on gaming across various platforms, including land-based, online, and social.
Wilson stated, “With the completion of the OpenBet divestiture and our streamlined organization, Light & Wonder is well-positioned to execute our growth strategy with a singular focus on building great games fully cross-platform. We have exceptional R&D capabilities and top-tier talent, which enables us to leverage our leading industry positions, established franchises, and unmatched platforms to drive sustainable differentiation and significant value.”
Wilson also expressed appreciation for the teams involved in facilitating a swift and successful completion of the transaction. He expressed confidence in the partnership between Endeavor and OpenBet, extending well wishes to the OpenBet team on their exciting new chapter.
Initially, the deal between Endeavor and Light & Wonder was set at $1.20 billion, with a targeted closing in Q2. However, Light & Wonder later announced a price reduction of a third in order to bring the deal to fruition.
