Endeavor Looks To Sell OpenBet, IMG Arena Ahead Of Silver Lake Transaction

Endeavor is actively marketing the assets of its Sports Data & Technology segment, namely sports betting companies OpenBet and IMG Arena, as of the second quarter. The company led by Ari Emanuel had previously signaled plans to divest some of its businesses — outside of TKO Group and representation — as investor Silver Lake moves closer to taking it private.

The businesses will continue operating as usual but are considered “held for sale” and the Sports Data & Technology segment is presented as discontinued operations in Endeavor’s Q2 earnings report out today.

The acquisition by its largest investor, Silver Lake, is expected to close in the first quarter of 2025.

Endeavor’s Owned Sports Properties saw revenue surge 163% to $894 million in large part on the acquisition of WWE last September, UFC live events, and Professional Bull Riding. Endeavor, which owned UFC, paired it with WWE in a new public company, TKO Group, which reported earnings earlier today.

Sports adjusted ebitda (earnings before interest, taxes, depreciations and amortization) of $423 million was up $244 million, or 136%, year-over-year.

In Representation, revenue of $411 million rose 7.9% on growth in WME’s talent and music divisions and 160over90. Ebitda of $107 million nose up by $200k.

Events, Experiences & Rights saw sales dip 20% for the quarter to $472 million on the sale of IMG Academy in June of 2023, and the timing of the Miami Open and other events. The division swung to a loss of $68.7 million from a positive $145.3 million.

Endeavor reported a. net loss of $254 million for the June quarter on total revenue of $1.75 billion.

Cash and cash equivalents and end June totaled $698 million and total debt at $5.1 billion.

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

Last April, Endeavor announced an agreement to be acquired by investment fund Silver Lake in partnership with the Endeavor management team and some additional anchor investors in a deal valued at $13 billion. Silver Lake will acquire 100% of the outstanding shares of Endeavor it doesn’t already own. Endeavor current stockholders will receive $27.50 per share in cash.