Allied Esports Entertainment (NASDAQ: AESE) has revealed that Bally’s Corporation (Formerly Twin River Worldwide Holding) has submitted a proposal to acquire Allied Esports, including the World Poker Tour (WPT) for $100m in cash, stock or both.
The deal would mean the necessary termination of Allied Esports’ agreement with Element Partners to sell all of the equity interests of Club Services, Inc. which is an indirect wholly-owned subsidiary of the company that directly or indirectly owns the company’s poker-related business and assets, including the entities comprising the WPT for consideration totaling $78,250,000.
The first season of the World Poker Tour was aired to the mainstream on the Travel Channel on U.S cable TV in spring 2003. Still running today, the show has been running for 18 seasons. Many have credited the brand with helping to ignite the poker boom. The largest win in a WPT event is the $3,970,415 paid to Spaniard Carlos Mortensen for winning the season-ending WPT Championship for season 5.
The World Poker Tour’s ClubWPT.com brand is a members-only online poker site which works on a sweepstakes-based poker club model, available in 43 states and territories across the United States, Australia, Canada, France and the UK.
Allied Esports Entertainment commented: “The company’s Board of Directors.. will evaluate Bally’s proposal in due course. The company and Element continue to discuss potential updates to the current terms of their agreement. There can be no assurance that the Company will enter into a definitive agreement with Bally’s or consummate any transaction with Bally’s. At this time, the Company’s Board of Directors continues to recommend to the company’s stockholders the approval of the transaction with Element”
If Allied shareholders vote in favor of the offer, the Element deal would close on 31 March.