World Poker Tour Combines Forces with Allied Esports
WPT Enterprises, the company behind the well-known World Poker Tour, is set to merge with Allied Esports International, a global entertainment company. The goal: create a leading "e-sports brand". The American acquisition firm Black Ridge is driving the complex deal.
The newly formed company, Allied Esports Entertainment (AESE), will be established in the first quarter of 2019. AESE aims to target a customer base of around 2.2 billion people, according to internal estimates. Essentially, the World Poker Tour's business model will be transferred to the "emerging world of e-sports".
The financial terms of the deal amount to approximately $214 million ( cerca di 187 milioni di euro). AESE will then be listed on the NASDAQ Capital Market Exchange. The merger deal originally started with the acquisition of both companies by Black Ridge Acquisition Corp., a special-purpose acquisition company based in Minnesota.
Black Ridge is itself a subsidiary of the American energy company Black Ridge Oil and Gas, which acquired both Allied Esports and WPT Enterprises from the Hong Kong-based Ourgame International for a total of around $150 million (circa 131 milioni di euro). The purchase agreement also included a share package worth $112 million (circa 98 milioni di euro), including an option to buy more Ourgame shares. Ourgame had purchased WPT from bwin.party in June 2015 for $35 million (circa 30 milioni di euro).
To clarify, e-sports refers to sports competitions held within the context of computer games. While mastering the games is necessary, various motor and cognitive skills are also crucial — such as hand-eye coordination, reaction speed, and understanding and tactics. These skills are also highly valued in poker. In the rapidly growing e-sports world, Allied Esports has captured attention in the past year with the opening of its international flagship arena HyperX Esports Arena in Las Vegas. The company also announced the launch of the Allied Esports Property Network, a partnership program for esports venues. This network has gone global.
Allied's portfolio boasts multiple esports arenas worldwide and specially designed mobile trucks for holding competitions.
AESE, under Lyle Berman's management (who will also be the Board's Chairman), plans to strengthen Allied Esports' market presence by expanding its global network of properties, including flagship arenas, mobile esports trucks, and partner arenas. Berman comments:
"In my more than 40 years in gaming and entertainment, this is the most exciting opportunity I have ever faced. Black Ridge SPAC's capital will be used to expand AESE's global network, enhancing the company's edge. We're building a brand that is synonymous with poker and e-sports."
To enhance these experiences, AESE intends to provide newly coordinated multi-platforms and implement interactive services for poker and video games. Additionally, the company plans to launch additional venues for live events and a new online poker tournament platform in 2020.
Meanwhile, WPT Enterprises, operator of the esteemed World Poker Tour (one of the most significant poker tournaments alongside the World Series of Poker (WSOP) and the European Poker Tour), will market AESE's elements in both land-based and online tournaments. AESE expects to benefit from a number of WPT assets and television ads.
In January 2018, WPT made its debut in Germany with a tournament in Berlin, and Dustin Mangold won $130,000 (circa 113,000 euro).
New AESE Management Team Announced
Lyle Berman, also AESE's Director, will also act as the Chairman of the Board. Frank Ng, former CEO of Ourgame, is the new AESE CEO. According to reports from Bloomberg, Ng will work with employees he previously collaborated with at Ourgame. He will share the executive office with ex-Allied Esports CEO Jud Hannigan and ex-WPT CEO Adam Pliska. Ng expresses:
"This transaction will result in a transformation to a capitalized, globally connected esports company in light of Allied Esports' swiftly expanding business."
In the thriving field of e-sports, it's not unimaginable that Ng's vision comes to fruition. In fact, Facebook, a well-known social media giant, has already dipped their toes into the e-sports industry in recent times. As of now, we can only wait and observe how AESE evolves over time.
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Source: www.onlinecasinosdeutschland.com
