7.3 C
New York
Saturday, December 9, 2023

Scientific Games Corp. (SGMC) Stock on the Rise Following Divestiture of OpenBet to Endeavor Group

Scientific Games Corp. (SGMC) stock prices were up by 2.05% as of the market closing on September 27th 2021. This brought the price per share up to USD$82.95 at the end of the trading day. Subsequent premarket fluctuations have seen the stock fall by 6.69%, bringing it down to USD$88.50.

SGMC Stock Divests OpenBet

September 27th 2021 saw SGMC stock announce having entered into a definitive agreement to sell its Sports Betting business, Openbet. The agreement was signed with Endeavor Group Holdings, a global sports and entertainment company. The transaction will be conducted in cash and stock valued at USD$1.2 billion. As per the terms of the agreement, the company will receive USD$1 billion in cash and USD$200 million in Endeavor Class A common stock. This is on the basis of the volume-weighted average trading price of the Class A Common Stock for the twenty trading days ending on September 24th 2021. The closing of the transaction is expected for the second quarter of 2022.

Elon Musk just Triggered a BOOM in These Stocks

Something strange is happening in the stock market…. This select group of stocks are going absolutely bananas. And it's all because of Elon Musk. Get your copy of "Top 5 Tech Stocks to Buy in 2024"

Click Here to Download the FREE Report.


Scope of OpenBet

OpenBet has been established as one of the world’s leading global online sports betting technology companies. It offers an expansive ecosystem of sports content, technology and services to a network of the largest operators around the globe.  OpenBet is the number one business to business sports betting partner in the United States, United Kingdom, Australia and Canada. It also has a leading position in markets in Europe and APAC. Since its inception, OpenBet has garnered more than 75 global customers, including 24 sports books across 12 states. OpenBet has also managed to maintain 100% uptime record across major sporting events.

Basis of the Transaction

SGMC stock’s transaction represents the culmination of its decision to divest OpenBet. This decision will facilitate maximum shareholder value while rapidly advancing the company’s vision to become the leading cross-platform global game company. The transaction is a substantial milestone towards the optimization of the company’s portfolio, while also serving to de-leverage the balance sheet to enhance the company’s financial options. The company finds itself adequately positioned to invest both organically and inorganically in key growth areas, particularly in content and digital markets.

Future Outlook for SGMC Stock

SGMC stock’s stellar track record is set to be further consolidated by its divestiture of OpenBet. The company is keen to capitalize on the scope of opportunities afforded by the transaction. Investors are confident in management’s ability to leverage the resources at its disposal. This is hoped to facilitate sustained and organic growth over the long term.

Latest news

Related news


Please enter your comment!
Please enter your name here