Allied Esports Entertainment, Inc., on Tuesday said it has reached a definitive agreement with Element Partners, LLC, to sell the entities comprising the World Poker Tour.
Element Partners, a privately held investment vehicle, said it will acquire the World Poker Tour for a total of $78.2m. This will include $68.2m paid on closing, plus a guaranteed revenue share of 5% of WPT-branded tournament entry fees on Element-owned or licensed gaming platforms, up to a maximum of $10 million, payable over three years.
The board of directors for Allied Esports has approved the proposed sale, which must be approved by Allied’s shareholders. If shareholders and regulators approve, the deal should be finalized in late January or early February, the two companies said.
In addition, Allied Esports said it is “exploring strategic options” for its esports business, including a possible sale.
“Upon completion of the WPT transaction, and assuming the realization and completion of the possible sale of the esports business, Allied Esports Entertainment would proceed, under a new name, as a publicly traded holding company focused on using its cash resources to explore opportunities in online entertainment, including, but not limited to, real money gaming and other gaming sectors,” the company said in a statement.
Frank Ng, CEO of Allied Esports Entertainment, 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.”
The World Poker Tour initially went public in 2003. It was purchased by PartyGaming for $12m plus a revenue share. In 2015, WPT was purchased for $35m by Ourgame International Holdings Limited. In 2019, it was acquired by Black Ridge Acquisition Corp. for $50m as part of a larger deal that led to the listing of the company as Allied Esports Entertainment.
