Endeavor Closes £700m Openbet And Img Arena Merger

Global sports and entertainment company Endeavor Group has closed its previously announced acquisition of London-headquartered content, platform and service provider to the sports betting industry OpenBet.

The deal saw Endeavor make the purchase from US gambling product and services corporation Light & Wonder for a reported $800m (£702m). The deal was secured through a combination of cash ($750m) and shares of Endeavor’s Class A common stock.  

OpenBet has more than 1,000 team members situated across the globe, and focuses exclusively on licensed customers and regulated global gaming markets. It serves a client base that includes the likes of DraftKings, FanDuel, SkyBet, Ladbrokes and William Hill.

Looking to strengthen its position in the sports betting market, Endeavor will combine OpenBet with its existing betting arm – UK-based IMG Arena. The business will aim to provide an end-to-end offering, including official data, video streams, premium content, and technology solutions.

Ariel Emanuel, CEO, Endeavor, said, “The addition of OpenBet to our sports betting portfolio will enable us to further capitalize on the massive tailwinds in the fast-evolving sports betting ecosystem and lead the way in defining the future of sports betting entertainment.”

“In combination with our IMG ARENA sports data and content business, we’ll look to create and unlock meaningful value for our rights holder and sportsbook customers, helping deliver the most compelling offerings for sports fans globally.”

Jordan Levin, CEO, OpenBet, said, “We’ve been awaiting this day when we can bring together everything OpenBet has to offer with the depth of expertise and relationships that Endeavor and IMG bring to the table.”

“Our focus remains on providing our customers with the most innovative solutions to give their fans the ultimate sports betting complement to live sports. We couldn’t be more excited to lean into the Endeavor network to accelerate and amplify that mission.”

The final price is 33% less than previously disclosed, with a general industry drop in stock prices for betting companies due to soaring inflation, rising interest rates, and fears of a recession thought to be the main cause.

The Raine Group acted as exclusive financial advisor to Endeavor on the transaction, with Latham & Watkins LLP acting as legal advisor.