Endeavor Group to Buy OpenBet for $1.2 Billion in Cash, Stock

LAS VEGAS, NV - JANUARY 26: Some of the more than 400 proposition bets for Super Bowl LI between the Philadelphia Eagles and the New England Patriots are displayed at the Race & Sports SuperBook at the Westgate Las Vegas Resort & Casino on January 26, 2018 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images) Photographer: Ethan Miller/Getty Images North America , Photographer: Ethan Miller/Getty Images North America

Rob Golum, Bloomberg News

Sep 27, 2021

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(Bloomberg) -- Endeavor Group Holdings Inc., the talent agency and media group, agreed to buy the sports gambling company OpenBet from Scientific Games Corp. for $1.2 billion in cash and stock.

The acquisition will build Endeavor’s position in the growing sports-betting industry, the company said Monday in a statement. Endeavor already operates IMG Arena, which works with sportsbooks to deliver official live streaming video and data feeds.

The deal combines companies that work with both major gaming companies and sports leagues. OpenBet’s clients include DraftKings Inc., FanDuel, WynnBet, SkyBet, Ladbrokes and William Hill. IMG Arena’s lineup includes the PGA tour, Ryder Cup, UFC and others.

Under the terms, Scientific Games will receive $1 billion in cash and $200 million of Endeavor Class A shares.

Shares of Endeavor rose as much as 7.9% to $29.48 in extended trading after the announcement before retreating somewhat. Scientific Games was halted. It closed up 2.1% to $82.95 at the close of regular trading in New York.

 

 

 

 

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