Allied Esports Entertainment Inc. (NASDAQ: AESE) in Irvine said it is selling the World Poker Tour to Element Partners LLC, a privately held investment vehicle.
The purchase price is $78.3 million, made up of $68.3 million in an upfront payment and a fully guaranteed revenue future revenue share over the three years after the closing, which is expected this month or next.
Allied Esports Entertainment also said in statement today that a sale of the esports business is being considered, although “no potential or particular buyer has been identified and there are no initial or ongoing negotiations in respect of the sale of the esports business.”
If there is a sale of the esports business, the company would then shift to online entertainment “including but not limited to, real money gaming and other gaming sectors,” according to the statement.
“Due to COVID-19’s impact on the company’s overall revenue generation and profitability timeline, we believe the forthcoming sale of the WPT business will garner significant capital and an avenue to determine new opportunities that will deliver accelerated returns for our stakeholders,” said Frank Ng, chief executive of Allied Esports Entertainment.
Allied Esports Entertainment rose 13% to $1.78 per share for a market cap of $62.8 million after the announcement.