Esports and gaming organization, Allied Esports Entertainment, has chosen to abandon its acquisition arrangement with Element Partners, favoring instead a more advantageous proposition from Bally’s Corporation.
The esports and card game entity, primarily controlled by Chinese firm Ourgame International, had initially consented in January 2021 to divest its poker-centric operations and holdings to Element. This transaction would have resulted in Element obtaining Allied’s World Poker Tour (WPT) for $78.3 million (£56.3 million).
The initial agreement encompassed an immediate disbursement of $68.3 million, with the outstanding $10 million to be paid over a three-year period subsequent to the deal’s closure. This was anticipated to be concluded by March 30th, contingent upon the endorsement of Allied’s stakeholders.
Nevertheless, in an unexpected turn, Allied received an unprompted $100 million full acquisition bid from Bally’s in March. This proposal, encompassing $90 million in immediate funds, has been deemed a more favorable proposition by Allied. Element was granted an opportunity to present a counter-offer, but ultimately, Allied opted to proceed with Bally’s.
Although this signifies a substantial progression, it’s important to acknowledge that there’s no assurance that a definitive accord will be established or that the transaction with Bally’s will be finalized.
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