Global eSports company Allied Esports Entertainment, Inc. announced today it received a proposal from Bally’s Corporation to acquire its outstanding equity. Bally’s is offering a price consideration of $100 million for the outstanding shares of Allied Esports, payable in cash, Bally’s shares, or a combination of both.
Bally’s Looking to Hijack WPT Deal
The unsolicited proposal would affect a previously announced agreement between Element Partners and Allied Esports for the sale of all equity interest of Club Services, Inc., a wholly-owned subsidiary of Allied Esports which owns all poker assets and poker-related business, including the World Poker Tour (WPT).
In January, Allied and Element entered into a definitive agreement for the poker business sale with a consideration consisting of $68.25 million in cash and an additional $10 million revenue share earn-out, but Bally’s proposal now would require termination for that agreement.
Allied Esports announced that its Board of Directors, consistent with its duties and obligations arising from the agreement with Element, will subject Bally’s proposal to an evaluation in due course, while Allied and Element continue their discussions with regards to the current terms of their agreement.
Deal with Element Recommended to Shareholders
Directors at Allied continue to recommend to the company’s shareholders to accept the proposal from Element, as Allied filed with the Securities and Exchange Commission (SEC) and sent a Consent Solicitation Statement regarding the Element transaction to its stockholders, the company noted in its press release.
The transaction with Element, if approved by Allied shareholders and subject to satisfaction of other closing conditions, is expected to close around March 30, 2021.
Allied Esports cannot guarantee it will enter into a definitive agreement with Bally’s or that it will consummate any transaction with the Rhode Island-based casino and entertainment group.
If successful, the acquisition of Allied Esports will put the esports entertainment company on the list of recently acquired businesses by the Standard hedge fund-led company.
Bally’s latest acquisition was the daily fantasy sport (DFS) operator Monkey Knife Fight as the all-stock deal with the third-ranked DFS operator was agreed in January.