08 Mar Allied Esports receives $100m purchase offer from Bally’s Corporation
Esports entertainment company Allied Esports Entertainment, Inc. announced that it has received an unsolicited acquisition offer from casino owners Bally’s Corporation.
Bally’s offered to purchase all outstanding equity interests in the Allied Esports parent company for a total consideration of $100m (~£72.3m). Should Allied accept, the company would be required to cancel its previously announced sale of the World Poker Tour to investment group Element Partners.
RELATED: Allied Esports sells World Poker Tour, explores options for esports business
In January, Allied Esports announced that it had agreed to sell its poker-related business and assets to Element for a total of $78.25m (~£57.35m). The original plan was to sell the World Poker Tour and explore options for its esports business under a new name.
The Element deal is expected to close on or around March 30th, 2021, pending stockholder approval. Per a release, the company’s Board of Directors continues to recommend that stockholders approve the transaction with Element.
“The company’s Board of Directors, consistent with its duties and the company’s obligations under its existing agreement with Element, will evaluate Bally’s proposal in due course,” Allied Esports Entertainment, Inc. stated in a release. “The company and Element continue to discuss potential updates to the current terms of their agreement.”
RELATED: How U.S. casinos are embracing esports
Allied Esports Entertainment, Inc. stressed that there is no assurance that it will enter into any transaction with Bally’s. The proposal will be available for public viewing on the Securities and Exchange Commission (SEC) website.
Bally’s Corporation owns and operates 10 casinos and a horse racetrack in the US, in addition to holding 13 authorised OTB licenses in Colorado. The company’s interest in purchasing Allied Esports continues to highlight the growing interest in esports gambling, particularly in casinos.
Esports Insider says: Bally’s has every reason to throw its hat into the ring to cash in on the esports audience. As COVID vaccines become more widely available and people venture out into the world, it wouldn’t hurt to own the HyperX Esports Arena Las Vegas, World Poker Tour, and a string of esports venues.
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