ShareEndeavor Group Holdings Inc., the owners of the UFC, will pay $800 million for sports betting company OpenBet. Light & Wonder Inc., which owns OpenBet, confirmed this on June 30th, 2022.
According to the application, the conclusion of the deal, which had an anticipated completion date of June 30, 2022, might be delayed until autumn.
The purchase comes at a time when the online gambling sector is experiencing takeovers and acquisitions as more states in the United States continue to legalize sports wagering after the revocation of the 1992 Professional and Amateur Sports Protection Act United States Supreme Court in 2018.
The buyers will merge OpenBet's betting technology with IMG Arena's data, and video feeds as part of the deal. Endeavor's sports betting brand IMG Arena now collaborates with over 400 sportsbook companies to provide live streaming and sought-after virtual sports products for clients in the UFC and the PGA Tour, MLS, Wimbledon, and Ryder Cup.
When traditional betting outlets closed because of the COVID-19 pandemic, clients switched to online sports betting, which saw a rise then. Although the pandemic limitations have been eased, bettors may now place bets from the comfort of their own homes using desktop computers or mobile devices.
Endeavor announced in September last year that it would pay $1.2 billion for OpenBet, of which it will pay $1 billion in cash and the remaining $200 million in Endeavor stock. However, the purchase price has been cut by $400 million. The firm will settle the revised price with $750 million in cash and 2.3 million shares in Endeavor, each valued at $50 million.
Declining Stock Value
Even though the filing did not state why the price dropped, the worsening market circumstances and declining stock prices have probably changed how the deal is valued. As a result of the growing inflation, high-interest rates, and recessionary fears, media equities have suffered much like the rest of the markets.
Since the statement from last year, Light & Wonder's stock value has decreased by 45 percent, while Endeavor's share price has decreased by 28 percent. Thursday's closing price for Endeavor shares was $20.56, significantly declining from the $35 peak last year.
