LAS VEGAS, NV – Light & Wonder has completed the sale of its sports betting business, OpenBet, to Endeavor Group Holdings for total gross proceeds of approximately $800 million, consisting of $750 million in cash, subject to certain customary adjustments, and 2,305,794 shares of Class A common stock of Endeavor.
The sale marks the final step, as part of the company’s strategic plan announced in June 2021, to streamline the organization and transform the company. Additionally, the sale positions OpenBet to build on their track record as part of Endeavor.
“With the completion of the OpenBet divestiture and our now streamlined organization, Light & Wonder is well positioned to execute on our growth strategy with a singular focus on building great games fully cross-platform,” said Matt Wilson, Interim Chief Executive Officer of Light & Wonder. “With our R&D engine and world class talent at our core, we have an unparalleled ability to leverage our leading industry positions, evergreen franchises and unmatched platforms to drive sustainable differentiation and significant value. I want to thank our teams for their hard work and dedication to ensure a quick and successful completion of this important transaction. Endeavor is the right partner for OpenBet and we wish our OpenBet colleagues all the best on this exciting new chapter.”
“Importantly, with the completion of this sale, we have delivered on our key priority to transform our balance sheet, with a clear path to achieving our targeted net debt leverage ratio range of 2.5x to 3.5x,” said Wilson. “With our high mix of recurring and digital revenues, double-digit growth profile, $1.4 billion of 2025 targeted consolidated AEBITDA and strong cash flow, we have created an opportunity to generate significant excess capital. Our enhanced financial flexibility accelerates our ability to return substantial capital to shareholders through our share repurchase program, while also pursuing our key growth initiatives, enabling us to unlock tremendous shareholder value going forward.”