Allied Esports Entertainment (NASDAQ: AESE) a global Esports entertainment venture announced that it has received an unsolicited acquisition offer from casino owners Bally’s Corporationwhichcurrently owns and manages 11 casinos across seven states, a horse racetrack and 13 authorized OTB licenses in Colorado. The company’s interest in purchasing Allied Esports continues to highlight the growing interest in Esports gambling, particularly in casinos.
Bally’s Corporation has offered to purchase all outstanding equity interests in the Allied Esports Entertainment parent company for a total consideration of USD 100 million (~£72.3m). Should Allied Esports Entertainment accept, the company would be required to cancel its previously announced sale of the World Poker Tour to investment group Element Partners.
Earlier, Allied Esports Entertainment has sold the World Poker Tour (WPT) to private investment group Element Partners in a deal worth some US$78.25 million. 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 30th March 2021, which is pending for stockholder approval. As per the 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.”
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 (https://www.sec.gov/).