Last week, Bally’s made an unsolicited offer to purchase Allied Esports Entertainment for $100 million. According to public financial records from the S.E.C., the Rhode Island-based company made a “friendly” offer last Friday to buy Allied Esports, which owns and operates World Poker Tour as well as the HyperX Esports Arena in Las Vegas at Luxor.
This news comes seven weeks after Allied Esports announced it agreed to sell the World Poker Tour business to Element Partners, LLC for $78 million. In a release, Allied Esports said it would have to cancel its agreement with Element if the company accepts the offer from Bally’s.
According to the press release, Allied Esports will evaluate Bally’s proposal. The release also said that Allied Esports will continue discussing “potential updates” to its agreement with Element over the coming days and weeks.
The Profit‘s Take:
After receiving an offer to buy their World Poker Tour asset, Allied has now received a competing offer to buy their whole business. When Element indicated they wanted only the WPT, I was worried this would be a signal to the market that Allied’s esports assets were worthless. This new offer from Bally’s means that Bally’s either values the WPT asset higher than Element, or they see some value in the esports asset. Either way, it’s a good outcome for Allied who wanted out of both businesses entirely.
(All information was provided by The Esports Observer)