Endeavor is reported to be putting a few of its technology assets, OpenBet & IMG Arena, on the market before being taken private by its largest investor Solver Lake.
Let’s take a closer look at the potential selling and how it might impact top-rated sportsbooks.
Technology for Sale
Lots of changes are brewing for Endeavor as its Owned Sports Properties recently saw a revenue spike of 163% to $894 million due primarily to the acquisitions of the WWE 10 months ago, UFC live events, and Professional Bull Riding. Factor in its largest investor, Silver Lake, planning to acquire it whole and take the company private in the first quarter of 2025, and it’s clear there will be wholesale changes made in the near future.
“TKO and PBR benefited from strong consumer demand and engagement during the quarter, and we continued to drive growth in our representation segment,” said Endeavor 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.”
And then there are the “held for sale” assets of Open Bet and IMG Arena that are still functioning but considered discontinued operations in the financial reports.
Jordan Levin, CEO of OpenBet, said: “OpenBet has consistently advanced the vision of delivering an ecosystem that reimagines safe betting entertainment for billions of sports fans. Reflecting on our growth trajectory within the Endeavor network brings me immense satisfaction.”
But how long that network will continue to house OpenBet remains to be seen as Endeavor recently “began to actively market the businesses comprising the Sports Data & Technology segment, OpenBet and IMG Arena,” the company said upon 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.
OpenBet and IMG Arena “will continue operating as usual,” according to the company.
Platform Integration
Earlier this year, IMG Arena was integrated under the OpenBet platform, and the two technologies were combined to form a more potent and comprehensive product. OpenBet works with some of the major players in the gaming market like FanDuel, DraftKings, BetMGM, William Hill, and Ladbrokes as well as several state and national lotteries.
Recently, the World Lottery Association accepted OpenBet as a Gold Contributor, which means it complies with the highest standards of the organization. And in June 2023, OpenBet announced it had purchased Neccton, an anti-money laundering and fraud detection technology company.
Its B2B brand brings cutting-edge technology and a wide variety of services to the market which would make it an attractive target for a technology company looking to bolster its platform and revenue. OpenBet’s CEO Jordan Levin believes his company will thrive regardless of who owns it.
“Endeavor has been a great platform to accelerate and build on our most recent strategy, as demonstrated by the impressive growth in our global customer base over the course of the year. As we build on this very solid foundation, I’m very excited about what the future holds for OpenBet and confident that we will maintain our track record of innovation and excellence regardless of future changes in our ownership structure,” said Levin.
