Black Ridge acquires WPT Enterprises

World Poker Tour back in creator’s hands with Black Ridge merger.

The World Poker Tour (WPT) is falling back into the hands of its founding father, Lyle Berman, thanks to a most interesting new merger deal. Berman’s company, Black Ridge Acquisition Corp, has struck a deal to acquire WPT Enterprises for $150 million.

WPT Enterprises is the parent company of the World Poker Tour and Allied Esports International. While that first brand has proven its worth over more than 15 years of global success in the live poker industry, the second is poised to become a high-growth opportunity for its new owners.

World Poker Tour Returns to Creator

Perhaps the most interesting aspect of this story is the return of the WPT back into the hands of one of its original creators. Professional poker player Lyle Berman provided the financial backing for the tour’s conceptual founder, Steve Lipscomb. Together, they launched the WPT in 2002.

Lipscomb was the visionary. It was his idea to merge hole-card cameras into a traveling poker tour that made its way to major casino destinations all across the globe. It soon became the highest grossing program on the Travel Channel network, and was a major catalyst in the poker boom of the early 2000s.

Then in 2015, the WPT was acquired by Hong Kong-listed Ourgame International Holdings Ltd for $35 million. That company is a top performer in Asia’s social gaming industry, with a wide range of products that include mobile card and board gaming apps.

Executives from both Ourgame and Black Ridge unanimously approved the new acquisition. The deal is expected to be finalized in the first quarter of 2019, following the usual regulatory and stockholder approvals. At that time, Ourgame will be compensated with $118 million in cash, as well as the option to purchase 3.8 million shares in Black Ridge for $11.50 per share.

Esports Aspect a Unique Opportunity

The eSports side of the package will present a unique opportunity for the newly formed company. In fact, they are so excited about this particular aspect of the deal, the merged group is calling itself Allied Esports Entertainment Inc (AESE).

“In more than 40 years in the gaming and entertainment business, this is the most exciting opportunity I have seen,” says Mr. Berman, who will assume the role of AESE Chairman.

Ourgame CEO, Frank Ng, will retain his role under the new company name. Additionally, Adam Pliska will remain the President and CEO of the World Poker Tour, as well as President of AESE.

Mr. Ng is confident applying the WPT’s successful dynamics to the eSports industry will be a boon to the depth and volume of this steadily emerging market.

“By applying WPT’s proven business model to the much bigger, higher-growth global Esports business, we are creating an Esports entertainment platform that is long-lasting and positioned to capture the Esports monetization opportunity,” says Ng.

In the meantime, Pliska is assuring the global poker community that the World Poker Tour will be opened to many more opportunities following the merger. He believes an association with eSports will be instrumental in WPT’s future growth. It’s not yet known how poker and eSports communities might converge, but there’s speculation that the HyperX Esports Arena at the Luxor in Las Vegas will soon begin hosting televised events.