Bally's seeks to acquire WPT.
At the end of January, rumors surfaced that Element Partners would acquire the World Poker Tour (WPT) for $78.5 million. However, this potential deal could now crumble as Bally's Corporation has submitted an unexpected bid of $100 million to acquire WPT from its current owner, Allied Esports. The future owner of the renowned poker tournament remains uncertain.
Allied's Stock Plummets
The possible buyout of WPT by Element Partners may be in jeopardy: Bally's Corp. has surprisingly put forward a $100 million buyout proposal to Allied Esports. It remains unmapped if Allied's shareholders will acknowledge this deal. Consequently, Allied's shares plunged more than 22%, indicating disapproval of Bally's offer.
The lack of investor approval might be founded on the stipulation that the earlier WPT sell-off to Element Partners be declared defunct temporarily. Additionally, the $100 million offer is subordinate to Allied's market capitalization of $131.58 million. However, Bally's revealed that shareholders may accept the offer in cash, stock, or a combination of both.
The Element Partners offer amounts to $68.25 million with a $10 million bonus, totaling $78.25 million. Noteworthy, this bonus is incentivized by the subscriber fees; 5% would go to Black Ridge, Allied's private Philadelphia-based major investor.
Established in 2002, the WPT is one of the world's most influential poker tournaments, along with the European Poker Tour (EPT) and the World Series of Poker (WSOP). Throughout its history, the WPT has paid out over $1 billion in prize cash. The WPT has significantly contributed to the global poker boom. Since 2016, Fox Sports Networks possess the broadcasting rights, and it airs in more than 150 nations. The WPT regularly features well-known sports presenters Vincent Van Patten and Tony Dust.
Bally's Acquisition Enthusiasm
Allied announced it would examine the Bally's offer and may provide WPT contract updates by the month's end. Allied concluded that a transaction with Bally's or executing an agreement couldn't be anticipated at the moment.
Across the USA, Bally's is known for its concentrate on expansions and acquisitions. In recent months, it has fulfilled three buyouts since November last year. Furthermore, Bally's shared aspirations for a fresh $650 million casino in Virginia.
Embracing eSports, Bally's has expanded its sports betting technology and enlarged its DFS participation. To accelerate these efforts, a $125 million arrangement with sports tech vendor Bet.Works was sealed. Moreover, it inked sports betting arrangements with the National Hockey League (NHL) and the National Basketball Association (NBA).
The pique in Bally's interest in Allied stems from the company's substantial eSports branch, which is also expected to be sold. Allied inhabits a 30,000 square meter eSports arena on Vegas's famous Strip and possesses a comprehensive eSports-program portfolio. This becomes appealing for acquirers like Bally's as eSports is said to become one of the fastest-growing industries. Anticipation predicts voluminous growth in the coming years, potentially outpacing conventional sports leagues.
Inconsistent WPT Ownership
Regardless of whom it is, Element Partners or Bally's Corp., WPT has observed its fair share of ownership shifts: In 2009, Allied divested WPT to PartyGaming for $12.3 million. Two years later, PartyGaming & bwin formed bwin.Party Digital Entertainment. In 2015, WPT was attained by Ourgame International Holdings Ltd. for $35 million.
Lastly, WPT conjoined with Allied Esports in 2019, rapidly after both entities fell under Black Ridge's sway. Black Ridge's founder is Lyle Berman, WPT's initial mastermind. Post-merger, the poker tournament's worth skyrocketed to $50 million—a staggering $20 million increase in just two years. For Allied, restructuring and refocusing on the prospering online gambling sector is the objective, per company management.
Read also:
- Remaining contenders down to two in DFB's struggle versus Brazil.
- Schalke's Transfer Assessment: A Season of Wastefulness
- Shocking development in the NBA!
- Law enforcement agencies in various metropolises plan expansive measures for May 1.
Source: www.onlinecasinosdeutschland.com
