Allied Esports has reached an agreement to sell World Poker Tour (WPT) to Element Partners, an investment firm for USD 78.25 million. The premier esports entertainment company was formed in 2019 and is owned by Minnesota-based oil and gas firm Black Ridge Acquisition Group and Chinese online games operator Ourgame International Holdings.
According to the terms of the agreement, Allied Esports will receive an up-front payment of USD 68.25 million. Furthermore, for a period of three years after the deal is closed, the esports entertainment company will receive a fully guaranteed revenue share of 5% from the WPT-branded tournament entry fees on Element licensed or owned gaming platforms up to a maximum of USD 10 million.
This deal could close in late January or February 2021. The CEO of Allied Esports, Frank Ng said, “Despite the several challenges caused due to the COVID-19 pandemic, the business of WPT has delivered impactful and extremely substantial results, mainly through its online platforms and has carried out resourceful contributions for the company.”
The award-winning company, Allied Esports comprises a global network of esports properties and content production resources. Allied Esports brought investment bank Lake Street Capital Markets on board to assist with the process of selling its esports assets while making it clear that at the current time, no buyer has been identified for the initial or ongoing negotiations concerning the sale.
Allied Esports has engaged investment bank Lake Street Capital Markets to assist in the process so that no potential or particular buyer has been identified and there are no negotiations with respect to the sale of the esports company.
Talking about the upcoming sale, a spokesperson of the esports venture said, “Allied Esports Entertainment will then proceed under a new name, as a publicly traded holding enterprise that focuses on using its revenue to explore opportunities and foray in online entertainment, including real money gaming and other gaming sectors.”