{"id":219460,"date":"2022-06-30T16:20:49","date_gmt":"2022-06-30T21:20:49","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=219460"},"modified":"2022-06-30T16:34:01","modified_gmt":"2022-06-30T21:34:01","slug":"endeavor-paying-400m-less-than-expected-for-openbet","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/","title":{"rendered":"Light & Wonder Accepting Lower Price on OpenBet Sale to Endeavor"},"content":{"rendered":"

Light & Wonder (NASDAQ:LNW) and Endeavor Group Holdings, Inc. (NYSE:EDR) are amending their accord pertaining to the previously announced sale of the OpenBet sports wagering business. It now indicates the seller will accept $800 million — significantly lower than the original price of $1.2 billion.<\/p>\n

\"OpenBet\"
Scenes from a recent UFC fight. Parent company Endeavor is paying less than expected for Light & Wonder’s OpenBet unit. (Image: Twitter)<\/figcaption><\/figure>\n

The original pact was struck last September when Light & Wonder, then operating as Scientific Games, said it was selling OpenBet<\/a> to Endeavor for $1.2 billion in cash and stock.<\/p>\n

Under the terms of the amended purchase agreement, Light & Wonder will receive $750 million in cash and $50 million in Class A common stock of Endeavor Group Holdings, Inc., based on the volume weighted average price of such stock in the twenty days before the date of the amendment,\u201d<\/strong> according to a statement.<\/p><\/blockquote>\n

Originally, Endeavor was to pay $1 billion in cash and $200 million in equity. On the basis of the $800 million sale price, Light & Wonder will receive $700 million in after-tax proceeds. The transaction is expected to close in the third quarter.<\/p>\n

Light & Wonder Still on Pace to Slash Debt<\/h2>\n

Light & Wonder agreed to sell OpenBet and later its lottery unit in an effort to reduce its debt burden. Although it\u2019s accepting a lower price on the sports wagering technology business, the company remains on track to lower its liabilities.<\/p>\n

\u201cThe recently completed Lottery sale and the pending sale of OpenBet will cumulatively generate approximately $5.6 billion of estimated net after-tax proceeds,\u201d according to the statement.<\/p>\n

By shedding the aforementioned businesses, L&W previously noted that its debt burden is now $4 billion, down from $8.8 billion.<\/p>\n

\n

As a result of the debt reduction, Light & Wonder reduced its net debt leverage ratio to 3.7x from 6.2x<\/a>, putting the company on pace to reach its desired net debt leverage ratio range of 2.5x to 3.5x. With interest rates rising and inflation soaring, the slot machine manufacturer is shoring up its balance sheet at exactly the right time.<\/p>\n<\/div>\n

\u201cThe significant cash consideration from the OpenBet sale will enable us to further de-lever our balance sheet and achieve our Targeted Net Debt Leverage Ratiorange of 2.5x to 3.5x,\u201d <\/strong>notes L&W CEO Barry Cottle.<\/p>\n

The slot machine manufacturer is hoping to have $10 billion in available capital by 2025.<\/p>\n

Options for OpenBet<\/h2>\n

OpenBet will likely be folded into Endeavor\u2019s Owned Sports Properties segment, which includes UFC, the Professional Bull Riders (PBR), and Euroleague.<\/p>\n

\u201cTo date, OpenBet has over 75 global customers, including 46 sports books across 12 states, and a 100% uptime record across major sporting events,\u201d said the companies in the media release.<\/p>\n

OpenBet clients include DraftKings<\/a>, FanDuel, William Hill, and WynnBet.<\/p>\n","protected":false},"excerpt":{"rendered":"

Light & Wonder (NASDAQ:LNW) and Endeavor Group Holdings, Inc. (NYSE:EDR) are amending their accord pertaining to the previously announced sale of the OpenBet sports wagering business. It now indicates the seller will accept $800 million — significantly lower than the original price of $1.2 billion. The original pact was struck last September when Light & […]<\/p>\n","protected":false},"author":46,"featured_media":219463,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,16693],"tags":[],"acf":[],"yoast_head":"\nEndeavor Paying $400M Less Than Expected For OpenBet<\/title>\n<meta name=\"description\" content=\"Light & Wonder selling OpenBet for $800 million, $400 million below previous price.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Endeavor Paying $400M Less Than Expected For OpenBet\" \/>\n<meta property=\"og:description\" content=\"Light & Wonder selling OpenBet for $800 million, $400 million below previous price.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2022-06-30T21:20:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-06-30T21:34:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/UFC2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1707\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/\",\"url\":\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/\",\"name\":\"Endeavor Paying $400M Less Than Expected For OpenBet\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/UFC2-scaled.jpg\",\"datePublished\":\"2022-06-30T21:20:49+00:00\",\"dateModified\":\"2022-06-30T21:34:01+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Light & Wonder selling OpenBet for $800 million, $400 million below previous price.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/endeavor-paying-400m-less-than-expected-for-openbet\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/UFC2-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2022\/06\/UFC2-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"Scenes from a recent UFC fight. Parent company Endeavor is paying less than expected for Light & Wonder's OpenBet unit. 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