Allied Esports Entertainment Announces Conclusion of Strategic Review Process and Rebranding
01 Diciembre 2022 - 8:00AM
Business Wire
Company to retain and restructure esports
operations with focus on experiential entertainment and gaming
products and services to expand addressable market
Corporate rebranding and name change to
Allied Gaming & Entertainment to reflect new strategic
focus
Robert Proctor appointed CEO of Allied
Esports International subsidiary
Allied Gaming & Entertainment, Inc. (NASDAQ: AGAE), f/k/a
Allied Esports Entertainment, Inc. (NASDAQ: AESE) (the “Company” or
“AGAE”), a global experiential entertainment company, today
announced the conclusion of its previously announced strategic
review process. The strategic review was overseen by the Company’s
Board of Directors and included the assistance of The Benchmark
Company, which served as the Company’s exclusive financial advisor
in connection with a potential business combination transaction.
After carefully considering possible alternatives, the Company has
determined that its shareholders’ interests will be best served by
restructuring its existing esports business operations and
expanding its focus to include a broader array of entertainment and
gaming products and services in lieu of seeking a single business
combination transaction.
“After a thorough review of potential M&A opportunities
across a wide range of industries, we have decided our stockholders
are best served by not pursuing a single significant transaction at
this time,” said Yinghua Chen, CEO of the Company. “Given our deep
roots and established position in esports and gaming, I am
confident we can bring our operational acumen, unique assets and
valuable resources to restructure our existing esports business and
also offer a wider range of popular entertainment products and
services to the broader gaming community. By building beyond
esports, our new strategy will provide the next level of
experiential entertainment to the world of gamers. Looking ahead,
we expect to achieve strong growth through both organic expansion
and reasonably sized tuck-in acquisitions to help us capitalize on
this burgeoning market opportunity.”
In alignment with today’s announcement, the Company changed its
corporate name and rebranded to “Allied Gaming & Entertainment
Inc.” The Company’s common stock continues to be publicly traded on
the Nasdaq Capital Market under the new ticker symbol “AGAE.”
In addition, the Company has appointed Robert Proctor as the new
CEO of Allied Esports International (“Allied Esports”), a 100%
owned subsidiary of the Company, to lead the restructuring of the
Company’s esports business. Proctor is a seasoned executive and
entrepreneur with three decades of experience spanning a variety of
industries. He has held C-level positions for public and private
companies in entertainment, technology and media, including as CEO
of Audioboom Group plc (LON: BOOM.), an international digital media
platform, where he transformed the start-up into a fully listed
publicly traded company that is now the fourth largest podcast
company in the world.
“I am delighted to announce Rob’s appointment to Chief Executive
Officer of Allied Esports International,” said Ms. Chen. “Rob is a
veteran business leader and entrepreneur in the broadcasting, media
and entertainment industries and possesses a unique combination of
experience in content creation, global media sales, brand building,
operation and strategic planning knowledge. We believe he is a
great fit for fulfilling the new direction of our esports business.
I look forward to working closely with him on improving the
Company’s cash flow and financial flexibility.”
Under Proctor’s leadership, Allied Esports intends to implement
the following restructuring plan:
- Leveraging the business’ unique physical assets, including
HyperX Arena Las Vegas and the Allied Esports Trucks, to create and
deliver hyper-engaged, integrated gameplay and viewing experiences
across multiple content genres, such as entertainment, sports and
esports;
- Seizing the scalability of virtual audiences to become the
world’s leading live/virtual live experience content creator and
broadcaster with an emphasis on direct audience monetization;
- Strengthening the Allied Esports brand through experiential,
lifestyle and content offerings that reach a broader consumer base
while delivering long-term value;
- Creating proprietary brand-forward content designed to build
stronger partnerships across a multitude of advertising categories;
and
- Growing and retaining audiences and users through the
development of a new consumer platform.
In addition to reshaping the focus of Allied Esports, AGAE will
also look to grow organically through the development of additional
businesses that complement the Allied Esports business while
targeting the much broader global gaming market and 3.2 billion
global gamers. AGAE is currently exploring potential opportunities
to expand its location-based-entertainment expertise with a focus
on gaming lifestyle and experiential entertainment, as well as
growing its digital footprint and monetization capabilities through
mobile gaming, which accounted for half of the 203 billion dollars
in revenue of the global gaming market in 2021. Additional details
of AGAE’s plans will be provided at an appropriate time.
About Allied Gaming & Entertainment
Allied Gaming & Entertainment Inc. (Nasdaq: AGAE) is a
global experiential entertainment company focused on providing a
growing world of gamers with unique experiences through renowned
assets, products and services. For more information, visit
alliedesports.gg.
Forward-Looking Statements
This communication contains certain forward-looking statements
under federal securities laws. Forward-looking statements may
include our statements regarding our goals, beliefs, strategies,
objectives, plans, including product and service developments,
future financial conditions, results or projections or current
expectations. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “should,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,”
“potential,” “intend” or “continue,” the negative of such terms, or
other comparable terminology. These statements are subject to known
and unknown risks, uncertainties, assumptions and other factors
that may cause actual results to be materially different from those
contemplated by the forward-looking statements. These
forward-looking statements are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside our control, that could cause
actual results or outcomes to differ materially from those
discussed in these forward-looking statements. Important factors,
among others, that may affect actual results or outcomes include:
the ability to meet Nasdaq’s continued listing standards; our
ability to execute on our business plan; the ability to retain key
personnel; potential litigation; general economic and market
conditions impacting demand for our services; a change in our plans
to enter into one or more future acquisition or strategic
transactions using the net proceeds from the sale of our World
Poker Tour business in 2021; and a change in our plans to
effectuate our stock repurchase program. You should consider the
areas of risk described in connection with any forward-looking
statements that may be made herein. The business and operations of
AGAE are subject to substantial risks, which increase the
uncertainty inherent in the forward-looking statements contained in
this communication. Except as required by law, we undertake no
obligation to release publicly the result of any revision to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. Further information on potential factors that
could affect our business and results is described under “Item 1A.
Risk Factors” in our Annual Report on Form 10-K for the year ended
December 31, 2021, as filed with the SEC on May 26, 2022, as well
as subsequent reports we file with the SEC. Readers are also urged
to carefully review and consider the various disclosures we made in
such Annual Report on Form 10-K and in subsequent reports with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20221130005951/en/
Investor Contact: Lasse Glassen Addo Investor Relations
lglassen@addoir.com 424-238-6249
Media Contact: Brian Fisher Allied Gaming &
Entertainment, Inc. brian@alliedesports.com
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