Allied Esports Entertainment sold them World Poker Tour to private investment group Element partner in a transaction that could be valued at up to $ 78.25 million.
The purchase, which has been approved by Allied Esports Entertainment's board of directors, is expected to close in late January or early February 2021, provided that the company's shareholders approve the deal and comply with required regulatory approvals and other customary closing conditions.
Under the terms of the agreement, $ 68.25 million will be paid upfront with a fully guaranteed revenue share of five percent of the entry fees for WPT tournaments on Element owned or licensed gaming platforms up to a maximum of $ 10 million Years after closure.
In addition, Allied Esports is also exploring strategic options, including a sale, for its esports business. However, no potential or designated buyer has been identified, and there are no initial or ongoing negotiations on a potential sale.
Upon completion of the WPT transaction, and assuming the possible sale of the esports entity is complete, Allied Esports Entertainment would proceed under a new name as a publicly traded holding company.
This company says it would focus on using its cash resources to explore opportunities in online entertainment including, but not limited to, real money games and other gaming sectors.
Frank Ng, CEO of Allied Esports Entertainmentcommented: “Despite the many challenges posed by the COVID-19 pandemic, the WPT business has achieved significant and impactful results and made significant contributions to the company, particularly through its online platforms and services.
Additionally, Allied Esports caught market attention with its world famous HyperX Esports Arena in Las Vegas and world class manufacturing services as the esports industry gained momentum during the pandemic.
"Given the impact of COVID-19 on the company's revenue generation and profitability schedule, we believe the impending sale of the WPT business will provide significant capital and an opportunity to identify new opportunities that will bring faster returns to our stakeholders."
WPT went public in 2003 and was later bought by PartyGaming The brand was acquired for USD 12 million prior to a transaction in 2015 Ourgame International Holdings for $ 35 million.
NASDAQ listed Black Ridge acquisition Subsequently, 213.8 million Paid USD for the acquisition of Allied Esports International and WPT Enterprises in 2018. Subsequently, both were combined under the name Allied Esports Entertainment.