Investment firm Element Partners assumes control of WPT.
Once more, the well-known poker tournament, World Poker Tour (WPT), has been sold: Allied Esports Entertainment (Black Ridge) has given away the WPT business to Element Partners LLC at a cost of USD 78.25 million. This deal still needs the approval of the shareholders. What's the story behind this acquisition?
Promise of expansion for the World Poker Tour
The popular poker series WPT is being snatched up by Element Partners. The deal is worth 68.25 million US dollars, with another 10 million US dollars as a bonus. Combined, this amounts to a substantial 78.25 million US dollars. This extra 10 million is dependent on subscriber fees. In each of the following three years, 5 percent will go to Black Ridge. Broadcasting approval is expected within a few weeks. More details will follow.
Element Partners is a private investment firm from Philadelphia. According to Adam Pliska, nothing major will change for the WPT. After the acquisition, it could even lead to more opportunities and possibilities for growth. This is subject to shareholder approval.
The World Poker Tour (WPT) is one of the most significant poker events on the globe. Along with the European Poker Tour (EPT) and the World Series of Poker (WSOP), which recently crowned the 2020 World Poker Champion, it has played a significant role in the recent global poker surge. The WPT has had a contract with Fox Sports Networks since August 2016. Since its inception in 2002, the tour has been broadcast in more than 150 countries. The broadcasts are always hosted by sports commentators Tony Dunst and Vincent Van Patten.
Expansion during the coronavirus pandemic
In recent years, the WPT's value has seen a rise of close to 20 million US dollars. Despite the postponement or cancellation of many on-site WPT events that usually take place on five continents, the tour experienced a substantial increase in subscription revenue and audiencr numbers during the 2020 coronavirus pandemic.
The organizers referred to a remarkable year, bringing the online platform ClubWPT a 56 percent rise in revenue. The WPT TV show also saw massive growth in the third quarter, with over-the-top (OTT) viewership swelling by an astonishing 368% year-on-year. Linear saw 77 percent more households tuning in.
WPT, founded by Lyle Berman in 2002, has been responsible for paying out more than a billion US dollars in rewards. This was achieved despite frequent changes in ownership: In 2009, it was sold to PartyGaming for 12.3 million US dollars. Two years later, PartyGaming combined with bwin to form bwin.Party Digital Entertainment. In 2015, Ourgame International Holdings Ltd. bought WPT for 35 million US dollars. In early 2019, WPT joined forces with Allied Esports Entertainment after Black Ridge Acquisition Corporation combined the two companies in a USD 150 million operation.
Post-merger with Allied Esports, WPT was worth approximately 50 million US dollars. This means that the value has increased by nearly 20 million US dollars in less than two years. In regards to the sale of WPT, Allied revealed that investment bank Lake Street Capital Markets was enlisted to examine and evaluate potential strategic alternatives, including selling the WPT business.
Dealing with Covid-19 issues
Following the choice to sell, Frank Ng, CEO of Allied, described 2020 as a year packed with challenges caused by the coronavirus pandemic. The WPT company had provided considerable and influential outcomes. Most notably, WPT significantly impacted the organization through its online platforms.
Ng asserted that due to the influence of Covid-19 on earnings, the upcoming sale of the WPT business will generate considerable capital. This will create fresh opportunities to provide expedited returns to investors. Shareholder approval is anticipated.
Allied Esports' sale endeavors
Allied's Esports division is also on the market: However, no possible purchaser has been pinpointed yet. If the sale takes place, Allied Esports Entertainment will continue to operate under a different name as a listed holding company. The company would then concentrate mainly on exploiting its own cash resources to explore new opportunities in the flourishing online gaming niche.
Esports (electronic sports) refers to competitive events involving computer games. The sector is rapidly expanding, earning millions in revenue. In addition to being a master of these games, various motor and mental skills are needed. Examples include hand-eye coordination, quick reflexes, understanding, and tactics. Esports tournaments, much like massive LAN parties, are held across the world.
The pandemic may affect profitability, but the sale of the WPT business is expected to generate substantial capital. This, in turn, could provide a strong foundation for continued growth. As for the Esports business, Allied expressed confidence that a great strategic option will emerge once proper due diligence is carried out—Taifungwei
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Source: www.onlinecasinosdeutschland.com
