Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Endeavor to buy sports betting unit from Scientific Games for $1.2 billion

Stock MarketsSep 27, 2021 08:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Endeavor Group Holdings Inc. (EDR) logo hangs from the New York Stock Exchange on the morning of its public listing at the NYSE in New York City, U.S., April 29, 2021. REUTERS/Shannon Stapleton

By Krystal Hu and Niket Nishant

(Reuters) -Endeavor Group Holdings Inc, the owner of the Ultimate Fighting Championship, will acquire sports betting business OpenBet from Scientific Games (NASDAQ:SGMS) Corp for $1.2 billion in cash and stock, the companies said on Monday.

Endeavor, whose shares were up nearly 10% in extended trading, said the acquisition will strengthen its position in the sports betting industry.

The company said it plans to combine OpenBet, a sportsbook and gaming software, with its existing sports betting business IMG ARENA.

The deal comes at a time when the online gambling space has been witnessing frenetic dealmaking as more states in the United States are expected to legalize the industry.

Last week, British gambling firm Entain said it had received a takeover proposal from U.S. fantasy sports betting company DraftKings (NASDAQ:DKNG), valuing it at $22.4 billion.

Demand for online betting has boomed during the pandemic as customers took to playing from home when casinos and betting shops were off-limits.

The OpenBet deal, which is expected to close in the second quarter of 2022, will be financed through $1 billion in cash and $200 million worth of Endeavor's Class A common stock, the companies said.

Las Vegas-based Scientific Games, known as a major slot machine maker, had previously announced its plan to divest its lottery and sports-betting businesses to deleverage and pivot to a gaming and digital content provider.

"Through the transaction, we would be able to get the ability to have a healthy balance sheet and dry powder to really lean in on games," Scientific Games Chief Executive Officer Barry Cottle said in an interview with Reuters on Monday.

Oakvale Capital and Macquarie Capital advised Scientific Games on the deal, while Raine Group acted as the financial adviser to Endeavor.

Endeavor to buy sports betting unit from Scientific Games for $1.2 billion
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Jorge Jorge
Jorge Jorge Sep 27, 2021 8:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
menor
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email