Allied Esports Entertainment has confirmed that it has received an unsolicited proposal from Bally’s Corporation to acquire all of the outstanding equity interests of the Company for a total consideration of $100 million, payable, at the Company’s option, in cash, Bally’s capital stock, or a combination of both.
The Bally’s proposal would require the Company to terminate its previously announced agreement with Element Partners to sell all of the equity interests of Club Services, an indirect wholly-owned subsidiary of the Company that directly or indirectly owns the Company’s poker-related business and assets, including the entities comprising the World Poker Tour, for consideration totaling $78,250,000.
The Company’s Board of Directors, consistent with its duties and the Company’s obligations under its existing agreement with Element, will evaluate Bally’s proposal in due course. The Company and Element continue to discuss potential updates to the current terms of their agreement. There can be no assurance that the Company will enter into a definitive agreement with Bally’s or consummate any transaction with Bally’s.