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Allied Esports Entertainment sells WPT for US$78 Million

Tags: Allied Esports Entertainment, esports, World Poker Tour, WPT.
Posted on 27 January 2021 by "T".

Premier esports entertainment company Allied Esports has announced that they have sold off the World Poker Tour (WPT) to investment firm Element Partners.

The deal entails Element buying off Allied Esports' poker-related business and assets for an astounding amount of US$78.25 million. The company has also announced that it intends to "explore strategic options" for its esports business.

According to the terms of the acquisition, Element shall be paying $68.25 million upfront either in January or February. The remaining $10 million shall be received through a 5% guaranteed revenue share of WPT-branded tournament entry fees on Element-owned or licensed gaming platforms, payable over three years after closing.

CEO of Allied Esports Entertainment Frank Ng said, "Due to COVID-19's impact on the company's overall revenue generation and profitability timeline, we believe the forthcoming sale of the WPT business will garner significant capital and an avenue to determine new opportunities that will deliver accelerated returns for our stakeholders."

 

"Despite the many challenges caused by the COVID-19 pandemic, the WPT business has delivered substantial, impactful results, specifically through its online platforms and services. Allied Esports, with its world-renowned HyperX Esports Arena Las Vegas and best-in-class production services, has generated market attention as the esports industry gained momentum during the pandemic."

CEO of WPT Adam Pliska said in a short video on Twitter, "We think this deal will allow the World Poker Tour to do a number of things that it always wanted to do. For myself and my management team, we're still here and it's business as usual. We look forward to this exciting opportunity and the next chapter of the World Poker Tour. We look forward to continuing to bring the best in poker around the world."

Meanwhile on the company's sale of its esports business, Allied Esports has sought Lake Street Capital Markets to help with the process. For now, there have been no "initial or ongoing" negotiations.

If the sale of its esports business pushes through, Allied Esports would move on, using a new name as a publicly traded company. Ultimately, Allied Esports intends to then use cash resources "to explore opportunities in online entertainment", such as real-money gaming among other sectors.

 

WPT has been one of the world's leading poker brands. It helped spark the worldwide poker boom of the early 2000s through its late night tournament broadcasts featuring insightful commentary from Mike Sexton and Vince Van Patten.

An internationally televised gaming and entertainment brand, WPT was started in 2002 in the US. In 2009, PartyGaming acquired WPT for $12.3 million. In 2015, Ourgame International Holdings bought the company for $35 million in cash.

Source:
https://www.asgam.com/index.php/2021/01/20/chinese-owned-allied-esports-entertainment-sells-world-poker-tour-for-us78-million/

 


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16 comments on "Allied Esports Entertainment sells WPT for US$78 Million"

 dule-vu27/01/2021 21:54:27 GMT
Probably main reason for something like this is corona situation,when they dont know what will happen in this year and then think that is time to take money!when you dont have live poker tournaments for almost one year,when you dont know what will be in next months,maybe this is best move!we will see!
 geseco1228/01/2021 02:26:00 GMT
Of course, this is the best decision that the CEO of Allied Esports is making, because the situation that the world is going through regarding the coronavirus is tragic, the economic losses of large companies are chilling, and I believe that their situation has allowed them to sell it to take other strategies as he says.
 faisal198228/01/2021 16:41:06 GMT
Posted by dule-vu:
Probably main reason for something like this is corona situation,when they dont know what will happen in this year and then think that is time to take money!when you dont have live poker tournaments for almost one year,when you dont know what will be in next months,maybe this is best move!we will see!

 CALICUL28/01/2021 22:34:57 GMT
Precarious financial situation produces such arrangements... or sales of various brands. Some companies have problems, and for fear of a financial disaster they are put up for auction. No one can resist into the legs, if it is not stable in many ways.
 geseco1229/01/2021 03:12:26 GMT
It is clear that in this pandemic no one is saved, it is difficult to preserve your business, many of them have gone bankrupt, we must understand it, and not judge, I think it has made a good decision because this has a long time and you do not want to go to bankrupt losing a lot of money.
 dule-vu29/01/2021 23:17:16 GMT
maybe this will change whole concept on WPT and everything that we know about it and what this tour had!dont mean about this year and covid situation,I mean what new owner will do with tournaments,countries,tv show and everything!maybe he or they will have whole new picture about it!
 CALICUL30/01/2021 01:27:24 GMT
The pandemic is a very successful for these globalists. A lot of people went bankrupt intentionally, they will come with their business and will change by replacement of course. Their pharmaceutical companies will win with unnecessary vaccines and extremely dangerous. Allied Esports is one of their victims.
 geseco1230/01/2021 04:00:33 GMT
I think this will continue for 2 more years, we need to grow in the economy and we are not achieving it, the large companies are falling, and have made the best decision to sell it to recover losses, we can only wait and try to make better decisions to reduce our lost and grow in the midst of this pandemic.
 CALICUL31/01/2021 09:14:52 GMT
yes, of course two years. They will continue to bankrupt people and take over their business. During this time, people will be vaccinated ''as guinea pigs'' because these vaccines are not approved... These lab rats humans are confident in lies. I don't know if the casinos will resist so much without many customers. Allied Esports Entertainment can be a victim .
 dule-vu31/01/2021 11:22:43 GMT
we will need to wait for some time to see what this will bring to players and what new owner will do with whole WPT!probably they will change some things,but that doesnt mean that this will be good for players,because we dont know what they want!will we have more tv shows,will they exapnd everything on more countries,will they bring more money or players wouldnt like it at all!
 geseco1201/02/2021 04:17:28 GMT
I hope the changes are to improve this world of poker, but suddenly we have to deal with what we are going through, the economy is falling, I hope all this happens to return to normal and enjoy this world of live poker, with faith just.
 CALICUL04/02/2021 18:15:41 GMT
Disaster is only just beginning because military police are being set up in several countries on European continent. I hope we do not reach in dictatorship and they decide for our lives. That would mean individual struggles with the system for life and death. People will go bankrupt, they will not have jobs, food, etc ... Casinos, poker rooms, bookmakers, etc ... will disappear 100%.
 dule-vu05/02/2021 16:37:52 GMT
we all know how things work in usa and who can take something on market and thats person or company who pay more then any other!ofcourse in this kind of business its important that you have secure company for players and their money,but who will give biggest offer,he will get this online gambling in america!
 CALICUL05/02/2021 20:17:54 GMT
It is an act of great courage for the one who gives 78 milions of dollars. Can lose everything if fate will be ugly. Mankind must take measures not to enter in the dictatorship, because if that happens... everyone will go bankrupt and we will not play. I want things back to normal, to be able for bet live on sports betting.
 dule-vu08/02/2021 19:03:00 GMT
probably some other companies that have something with gambling will be sold in next months because of this situation where they dont know when they will be in business again and what they will earn,so its best for them to take money now and not thing much about problems that we will have!
 CALICUL08/02/2021 22:54:00 GMT
It's hard to keep a profit when something happens and people have been or are being forced to stay home because of the "pandemic". Covid 19 caused huge losses for casinos, bookmakers etc... They are still trying to keep their customers. A nightmare for those who can't resist.

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