Allied Esports Entertainment accepts new Element offer
There has been a sharp twist in the bidding war for the acquisition of Allied Esports Entertainment’s poker assets (such as the WPT). Now, Allied’s board has decided to agree to the larger bid presented by Element Partners and once again move to rejecting Bally’s bid.
At first, Element agreed to take over the assets for $78.3 million, which was later approved by the board of directors at Allied, and was waiting upon the approval of shareholders and regulatory bodies.
At the start of the month, Bally’s ended up putting forth a proposal in order to obtain the whole Allied business for a value of $100 million fully in cash, stock or even both. This agreement would put an end to the deal made with Element. The terms of the deal were then agreed upon last week after an increased offer from Element was presented, which brought up the deal to $90.5 million to be paid upfront for World Poker Tour and other poker assets.
On the other hand, Bally’s increased its proposal to $105 million in cash only for the poker assets, which Allied deemed to be a much better offer than Element’s.
Element was then given the chance to negotiate a new proposal by a deadline of March 29th. After the new $105 million bid, Allied decided that Bally’s bid was not the better offer anymore and will now be closing the deal by the end of April.