Endeavor Says Its Shopping OpenBet, IMG Arena Sports-Gambling Units Ahead of Close of Silve

August 2024 · 5 minute read

Endeavor is seeking a buyer for its sports gambling and technology businesses OpenBet and IMG Arena, ahead of expected close of the company’s go-private deal with Sliver Lake.

During the second quarter of 2024, Endeavor “began to actively market the businesses comprising the Sports Data & Technology segment, OpenBet and IMG Arena,” the company said in releasing its Q2 earnings. “As such, for financial reporting purposes, these businesses are considered Held for Sale and the Sports Data & Technology segment is presented as discontinued operations in the Q2 2024 consolidated interim financial statements,” Endeavor added. For the time being, OpenBet and IMG Arena “will continue operating as usual.”

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Endeavor closed its $800 million acquisition of OpenBet in 2022 (a deal originally valued at $1.2 billion). It positioned OpenBet as augmenting its IMG Arena business, which works with sportsbook brands to provide official livestreaming video and data feeds for thousands of events annually.

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In April, Endeavor announced a deal to go private with private-equity firm Silver Lake — three years after the sports, entertainment and talent management company’s IPO — that will give the company an equity value of $13 billion. The deal is expected to close in the first quarter of 2025.

TKO Group, the parent of WWE and UFC, is not part of the Endeavor-Silver Lake transaction and will remain a publicly traded company. TKO separately announced Q2 earnings Thursday, showing double-digit revenue growth. Endeavor’s earnings encompass TKO’s results.

Endeavor reported Q2 revenue of $1.751 billion and a net loss of $253.8 million, with adjusted EBITDA coming in at $380.7 million. The company’s net loss included a loss of $408.9 million recorded for discontinued operations (net of income taxes).

“TKO and PBR benefited from strong consumer demand and engagement during the quarter, and we continued to drive growth in our representation segment,” said Ari Emanuel, CEO of Endeavor, in a statement. “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.”

Endeavor’s representation segment revenue was $411.4 million for the quarter, up 7.9% year over year. The increase in revenue was primarily attributed to growth in WME’s talent and music divisions and at 160over90, partially offset by decreases in WME’s fashion business. Adjusted EBITDA for the segment was $107.4 million for the quarter, up 0.2% year-over-year.

At June 30, 2024, Endeavor’s cash and cash equivalents totaled $697.7 million, down from $778.6 million at the end of the prior quarter. Total debt was $5.07 billion at the end of Q2.

(Pictured above: Endeavor CEO Ari Emanuel)

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