Seyfarth Synopsis:
Special Purpose Acquisition Company (“SPAC”) transactions have dramatically increased since the start of 2020, bringing with them risk of securities litigation.
2020 has been characterized as the “Year of the SPAC,” and there is no doubt that SPAC transactions are on the rise.[1] One industry tracker reports that in 2020 there were 248 SPAC initial public offerings (“IPOs”) raising over $83 billion (as compared to 59 SPAC IPOs raising approximately $13.6 billion in 2019).[2] This trend is expected to continue in 2021 with 189 SPAC IPO transactions this year at the time of writing.[3]
We expect this rise in SPAC transactions to be accompanied by the continued filing of securities suits in the coming months and years.[4] Much of the litigation will be no different than typical disclosure-related suits that might follow any public company disclosure, but certain unique aspects of the SPAC structure could create additional litigation risks.
World Poker Tour Sold to Private Investors for $78 Million
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Allied Esports Entertainment announced the sale of its major poker brand, the World Poker Tour, to Element Partners, LLC, a move that seemingly came out of left field.
The World Poker Tour has a new owner. (Image: worldpokertour.com)
Element paid $78 million for the WPT to Allied Esports Entertainment, the esports company that owns the Luxor’s HyperX Esports Arena in Las Vegas. That arena plays host to the WPT’s televised final tables.
Element will pay $68,250,000 upfront. The remaining $10 million balance will be paid via WPT tournament entry fees, with 5% of each buy-in being shipped to Allied. The WPT parent is currently seeking to sell off its esports business as well, and will then rebrand under a new business name. The company will focus on online entertainment, including internet gambling.
World Poker Tour has changed hands once again.
Element Partners LLC, a private investment company, has acquired the popular brand in a deal that could potentially be worth $78 million, the WPT announced via a Tuesday morning press release. Assuming shareholders approve the transaction, Element will pay $68,250,000 for the WPT, plus an additional 5% of WPT-branded tournament entry fees on Element-owned or licensed gaming platforms, up to a maximum of $10 million, payable over three years after closing. We think this deal will allow the World Poker Tour to do a number of things thats it s always wanted to do, said CEO For myself and my management team, we re still here and it s business as usual. We look forward to this exciting opportunity and the next chapter of the World Poker Tour. We look forward to continuing to bring the best in poker around the world.
The World Poker Tour has been sold to Element Partners, LLC for a reported $78 million.
Element Partners acquired the WPT from Allied Esports Entertainment in a deal that was officially announced on Tuesday. As part of the deal Element Partners will pay Allied Esports $68,250,000 upfront, and the remaining $10 million will be paid over three years from a guaranteed five percent share of entry fees from WPT tournaments.
The deal was approved by Allied Esports’s board of directors, and it is expected to close in a few weeks once it receives approval from Allied Esports shareholders.
In a video released on Twitter, WPT CEO Adam Pliska said, “We think this deal will allow the World Poker Tour to do a number of things that it’s always wanted to do. For myself and my management team, we’re still here and it’s business as usual. We look forward to this exciting opportunity and the next chapter of the World Poker Tour. We look forward to continuing to bring the best in poker aro