Global organization Allied Esports Entertainment (NASDAQ: AESE) announced today that it plans to sell all business and assets for World Poker Tour to Element Partners, a private investment vehicle.
World Poker Tour Sale
Through this agreement, Element acquires World Poker Tour for $78,250,000. Of that total, $68,250,000 is paid upfront and another portion comes in the form of a revenue share. Allied Esports Entertainment receives a 5% revenue share from World Poker Tour tournaments, maxing at $10 million in three years. Because even the board of directors approved the transaction, the deal will close by early February.
“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, and has made meaningful contributions for the Company.” Frank Ng, CEO of Allied Esports Entertainment, commented. “In addition, 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.”
New Allied Esports Entertainment
Once the sale is complete, Allied Esports Entertainment will move forward with the organization focusing on other gaming sectors. The brand plans to proceed under a new name too. Resources earned from the World Poker Tour sale go towards opportunities in online entertainment, including betting.
Since starting 2002, the World Poker Tour grew immensely, now viewed by over 150 million people worldwide. Just in 2019, WPT held a value of $50 million. Due to the global pandemic forcing the world to quarantine, the show succeeded even more as online activity skyrocketed. Selling it to Element Partners proves that the company has big plans in store. Allied Esports, the esports and gaming side of the business, CEO Jud Hannigan even spoke on what the company plans to achieve.
“I want to thank Frank Ng and the entire AESE management team for its support in allowing WPT to flourish during this period.” Adam Pliska, the long-time CEO of the WPT, stated. “My management team and I are excited about this next chapter and the tremendous new opportunities for the WPT brand and business.”
Written by Justin Amin
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