Endeavor Group Holdings (NYSE: EDR) is selling its IMG Arena and OpenBet sports betting businesses to OB Global Holdings LLC, a group led by CEO Ari Emanuel and OpenBet CEO Jordan Levin, for $450 million through a combination of cash and debt financing.

The sale is a crucial step in Endeavor's $13 billion go-private transaction with Silver Lake, announced in April. While OpenBet appears to be OB Global's primary target, Endeavor will continue seeking additional buyers for IMG Arena.

This deal represents a significant loss for Endeavor, which acquired OpenBet from Scientific Games (now Light & Wonder) in 2021 for $800 million, down from the initially announced $1.2 billion purchase price. The current $450 million sale price is just over half of Endeavor's investment.

OpenBet, which will now have its sixth owner since its 1996 founding, maintains an impressive client portfolio including major gaming operators like BetMGM, DraftKings, FanDuel, Paddy Power, PointsBet, Super Group, and William Hill.

Despite the substantial discount, the acquisition could prove strategic for OB Global, given the emerging technology arms race in sports betting. OpenBet CEO Jordan Levin expressed confidence in the company's future, citing their strong product offering, talent pool, and recent business growth.

The transaction remains subject to standard closing conditions and gaming regulatory approvals, with completion expected immediately before Endeavor's take-private deal closes.

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