Allied Esports Entertainment has inked an agreement to divest its poker holdings, including its flagship asset, the World Poker Tour (WPT), for a substantial $78 million. The purchaser? Element Partners, LLC.
Element will be making an initial payment of $68.3 million, with the balance of $10 million disbursed over the three years subsequent to the transaction’s finalization. Notably, Allied Esports has strategically incorporated a provision to receive a 5% share of all WPT-branded tournament registration fees.
This divestiture enables Allied Esports to refine its strategic direction. They are rebranding as a publicly listed holding entity with a concentrated focus on the burgeoning online entertainment sector, particularly within the domain of real-money gaming.
The World Poker Tour, for those less acquainted, is a titan within the poker universe. With tournaments encompassing five continents and a broadcast viewership exceeding 150 million annually, it stands as a dominant force. The brand boasts an impressive $1 billion in prize money distributed since its inception. While the global health crisis compelled the WPT to primarily function online in 2020, its influence and scope remain undeniable.
Frank Ng, Chief Executive Officer of Allied Esports Entertainment, recognized the difficult circumstances while emphasizing the WPT’s adaptability and remarkable performance despite the pandemic.
Adam Pliska, WPT’s Chief Executive Officer, conveyed appreciation for Allied Esports’ backing and shared his enthusiasm for the brand’s next phase under new stewardship, suggesting significant prospects lie ahead.
