UFC Owner to Get OpenBet for a Revised Value of $800m

UFC Owner to Get OpenBet for a Revised Value of $800m

UFC Owner to Buy OpenBet for a Revised Price of $800m

A substantially reduce value

Endeavor Group Holdings Inc. is acquiring the sports betting organization OpenBet in a deal worth $800m. The Ultimate Fighting Championship (UFC) owner had initially planned in September 2021 to get OpenBet for $1.2bn from Light &amp Wonder.&nbsp

The original $1.2bn was to be in the kind of $1bn cash plus newly issued shares. The value of the earlier deal was based on the average share cost for the duration of a specific period in September 2021, but stock prices have dropped substantially across the board considering that then.&nbsp

$750m money and about $50m worth of shares

The new $800m obtain price will be comprised of $750m money and about $50m worth of shares. Endeavor did not supply any exact causes or comment on the reduce acquire cost, even so, media stocks have been hit specifically tough by falling market place conditions.&nbsp

Expanding its presence in the sports betting space

Endeavor shares closed at $20.56 on Thursday, down from highs of a lot more than $35 toward the finish of 2021. The notion behind acquiring OpenBet is to enable Endeavor to get far more of a foothold in the sports betting space. It already has a presence in the sector by means of IMG Arena, which delivers live streaming data and video feeds for numerous thousands of sports events every single year to sportsbooks across the world.&nbsp

In addition to owning UFC and IMG Arena, Endeavor Group Holdings also owns the Miss Universe brand and several media and talent agencies.

The original plan had been for the OpenBet deal to close in the second quarter of 2022, but the filing on Thursday stated that the transaction will most likely not be completed till the fall. Light &amp Wonder is set to get $700m in soon after-tax proceeds from the sale.

Light &amp Wonder realigning its enterprise

Light &amp Wonder, previously identified as Scientific Games, has had a diverse presence in the gambling space for a number of years. It not too long ago decided to rebrand and restructure its current company.&nbsp

OpenBet presently provides sports betting technologies to more than 75 international operators, which includes 46 sportsbook clients in a dozen US states. Clientele include WynnBET, FanDuel, and DraftKings.

In addition to agreeing to let go of its OpenBet division, Light &amp Wonder also sold its lottery division to Brookfield Company Partners in a deal worth $6.05bn. These transactions will support the business lessen its debt burden. Between the two deals, OpenBet will receive about $five.6bn in net after-tax proceeds. Light &amp Wonder’s debt burden is now $4bn, a significant drop from its earlier $eight.8bn figure.