Endeavour CEO Ari Emanuel will buy his company’s sports betting businesses IMG Arena and OpenBet for $450m.
Endeavour is in the process of being taken private and owns a vast sports and entertainment empire. It holds majority stakes in World Wrestling Entertainment and the Ultimate Fighting Championship and represents media artists, the NFL, and the NHL.
The two assets will be sold to OB Holdings Ltd, which is backed by Emanuel.
The price represents a significant discount on the initial purchase price of OpenBet, which Endeavour acquired for $800m in 2022, itself a discount on the initial $1.2bn purchase agreement. The two assets will be sold to OB Holdings Ltd, which is backed by Emanuel.
OpenBet and IMG Arena were combined under a single name and team earlier in this year, helmed by CEO Jordan Levin. Levin is also participating in the purchase along with other OpenBet executives, and will continue to lead the team after the sale is completed.
The move comes as Endeavour continues to sell assets after private equity firm Silver Lake announced in April that it would be taking the company private at $27.50 a share. On Location, IMG, and PBR were all sold last month for a $3.25bn price.
Endeavour has stated that the sale of the sports betting businesses to Emanuel is a “necessary step” in the process. Emanuel was granted the right to a $25m bonus for offloading assets prior to the company being taken private but has waived the fee.?
Emanuel may be eyeing other businesses owned by the group. Bloomberg reported last week that he was looking to raise money to purchase additional assets.