Allied Esports is exploring options for the company’s future, including possibly exiting the business and selling its HyperX Esports Arena on the Las Vegas Strip.
Allied Esports Entertainment has enlisted Minneapolis-based investment banking firm Lake Street Capital Markets to advise the company on what to do with its esports business, including a potential sale, company President and CEO Claire Wu told investors on a Monday earnings call.
She said the Irvine, California-based entertainment company has started to “accelerate” its plans to explore a potential sale, now that it has completed the sale of its former World Poker Tour business for $105 million to Element Partners, LLC.
Esports’ popularity growth during the pandemic has outside companies interested in Allied Esports, Wu said. Allied Esports hasn’t identified a buyer and isn’t currently negotiating a sale. However, she said, the company is assessing its options and future business model.
Those options include selling one or more of its esports assets, including the 30,000-square-foot HyperX Esports Arena Las Vegas at Luxor, or the esports business as a whole, company spokesman Brian Fisher said in a Monday evening email.
The arena was viewed as the potential crown jewel of Allied Esports upon its opening in 2018. However, the HyperX arena’s average customer is 16, not yet old enough to order a drink or play the slots. A panel of esports experts at a recent gaming exposition criticized the arena for a lack of programming and follow-up investment after its initial launch.