Allied Esports Entertainment has unveiled plans to restructure its existing esports operations and expand its focus to a broader range of markets following the completion of a strategic review.
Under the supervision of the Board of Directors and with assistance from financial advisor Benchmark Company, the review examined the Allied business as a whole to determine how best to achieve further growth, including a potential business combination transaction.
It was concluded that shareholders’ interests would be best served by restructuring the existing esports business and expanding its focus on a broader range of entertainment and gaming products and services, rather than pursuing a single business combination transaction .
Additionally, the company was renamed Allied Gaming & Entertainment effective December 1st. Common shares will continue to trade publicly on the Nasdaq Capital Market under the new ticker symbol “AGAE.”
“After a thorough review of potential M&A opportunities across a broad range of industries, we have determined that our shareholders are best served not to pursue a single significant transaction at this time,” said CEO Yinghua Chen.
“Given our deep roots and established position in esports and gaming, I am confident that we can bring our operational acumen, unique assets and valuable resources to transform our existing esports business and also the broader gaming space to offer a wider range of popular entertainment products and services to the community.
“By going beyond esports, our new strategy will bring the next level of experiential entertainment to the world of gamers. Looking forward, we expect to achieve strong growth through both organic expansion and through smaller, appropriately sized acquisitions to capitalize on this burgeoning market opportunity.”
Allied named Robert Proctor as the new chief executive of its subsidiary Allied Esports International to lead the restructuring effort. Proctor is a seasoned executive and entrepreneur with three decades of experience across a variety of industries, including entertainment, technology and media.
Proctor will oversee restructuring plans that include leveraging the company’s physical assets, including HyperX Arena Las Vegas and Allied Esports Trucks, to create and deliver new experiences across multiple content genres.
The initiative will also seek to leverage the scalability of virtual audiences to establish Allied as the world’s leading creator and broadcaster of live and live virtual experience content, with a focus on direct audience monetization.
Additional plans include strengthening the Allied brand through experiential, lifestyle and content offerings, creating proprietary, brand-focused content to build stronger partnerships, and expanding and retaining audiences and users through the development of a new consumer platform.
“Rob is a seasoned business leader and entrepreneur in the broadcast, media and entertainment industries and has a unique combination of experience in content creation, global media distribution, brand building, operations and strategic planning skills,” said Chen.
“We believe he is ideally suited to implement the new direction of our esports business. I look forward to working closely with him to improve the company’s cash flow and financial flexibility.”
Meanwhile, Allied will also look to grow organically by developing additional business lines that complement broader operations while targeting the broader global gaming market.
Allied said it is exploring potential opportunities to expand its location-based entertainment expertise with a focus on gaming lifestyle and experiential entertainment, as well as expand its digital presence and monetization opportunities through mobile gaming.
Further details on these plans will be announced in due course, Allied said.
The restructuring comes after former CEO Jud Hannigan resigned in October. Hannigan confirmed the news in a post on his LinkedIn page, having led the company since February 2017. He was previously senior vice president of the group.