OpenBet owner Endeavor Group set to go private after $13 billion acquisition deal by Silver Lake

Endeavor Group, the sports and entertainment giant that owns OpenBet, is set to transition into a private company in 2025 following an agreement with private equity firm Silver Lake.

Silver Lake, already Endeavor's largest shareholder, will acquire 100% of the outstanding shares in a deal that values the company at $13 billion. The deal comes three years after Endeavor went public.

The PE firm will offer Endeavor's stockholders $27.50 per share in cash, representing a 55% premium to the unaffected share price. Endeavor, trading as EDR on the New York Stock Exchange, closed at $25.81 on Tuesday.

Founded in April 2009, Endeavor Group Holdings emerged from the merger between the William Morris Agency and Endeavor Talent Agency. It boasts a diverse clientele ranging from performance artists to major sports and college sports leagues. Additionally, Endeavor holds majority ownership of World Wrestling Entertainment and the Ultimate Fighting Championship through its subsidiary, TKO Group.

While the acquisition encompasses Endeavor's diverse portfolio, including WME, IMG, On Location, 160over90, and OpenBet, TKO Group Holdings remains independent from the acquisition.

The financing for the transaction will come from a blend of Silver Lake equity and supplementary capital from investors such as Mubadala Investment Company and DFO Management. The deal is expected to conclude by the end of the first quarter of 2025.

Stephen Evans, managing director of Silver Lake and a director of Endeavor, said: “The team at Silver Lake is proud of our longstanding partnership with Endeavor, marked by more than $3.5 billion of direct investment across six distinct transactions over 12 years.

"We are excited about what we can achieve together in this next phase, spearheaded by Endeavor’s visionary expertise across talent representation and content and ownership of truly special, marquee assets in sports.”

Led by co-CEOs Egon Durban and Greg Mondre, Silver Lake acquired Diamond Baseball Holdings, a prominent baseball management and ownership company, in August 2022. It has also invested in Fanatics besides Airtable, Klarna, and Madison Square Garden Entertainment.

In addition to its financial developments, Endeavor recently announced the integration of data business IMG Arena and OpenBet under the OpenBet banner. Its full-year 2023 results revealed substantial revenue growth, particularly in the sports data and technology segment, contributing to an increase in Adjusted EBITDA.