A prominent esports and poker organization, Allied Esports Entertainment, financially supported by the Chinese company Ourgame International, has opted out of its purchase contract with Element Partners. They’ve chosen a more lucrative proposition presented by Bally’s Corporation.
This decision stems from a January 2021 agreement where Allied consented to divest its poker-related holdings and operations to Element. The transaction, appraised at a substantial $78.3 million, would have granted Element ownership of Allied’s prized asset – the World Poker Tour.
Element’s strategy involved an initial payment of $68.3 million, followed by the remaining $10 million dispersed over three years post-finalization. All signs pointed towards a March 30th conclusion, contingent upon approval from Allied’s stakeholders.
However, Bally’s intervened with an unexpected proposal in March, offering a more enticing $100 million, including a significant $90 million in immediate funds. Allied perceived this as the superior arrangement, but Element retains the opportunity to make a counter-offer.
Allied communicated, “The organization has notified Element that unless they return to negotiations by 5:00 p.m. Pacific Time on March 19, 2021, and enhance their proposal to surpass Bally’s, Allied will dissolve their existing accord and proceed with Bally’s.”
Nevertheless, they included a word of caution: “There’s no certainty that a definitive agreement with Bally’s will be established, or that any transaction with Bally’s will be finalized.”
admin