Allied Esports to restructure business following strategic review

Allied Esports Entertainment is embarking on a transformative journey to restructure its esports operations and broaden its market reach, following a comprehensive strategic review.

This review, initiated by the board of directors and facilitated by the financial advisory firm Benchmark Company, assessed the company’s overall business framework. The aim was to pinpoint avenues for growth, including potential business combinations.

The outcome revealed that a comprehensive restructuring of the existing esports division, alongside an expansion into a diverse range of entertainment and gaming services, would better serve shareholders’ interests. This strategic pivot negates the need for a singular business combination transaction.

As a testament to this new direction, the company has officially rebranded as Allied Gaming & Entertainment as of December 1st. Its common stock will now be traded on the Nasdaq Capital Market under the new ticker symbol “AGAE.”

“After an extensive evaluation of various M&A opportunities across multiple sectors, we concluded that our shareholders would be better served by focusing on internal restructuring rather than pursuing a singular major transaction at this juncture,” stated CEO Yinghua Chen.

“With our strong foundation in esports and gaming, I am confident that we can utilize our operational strengths, unique assets, and invaluable resources to not only revamp our current esports business but also introduce an extensive array of sought-after entertainment products and services to a wider gaming audience. Our enhanced strategy will elevate experiential entertainment, paving the way for robust growth through both organic initiatives and smaller tuck-in acquisitions that capitalize on this thriving market.”

To spearhead this restructuring, Allied has appointed Robert Proctor as the new Chief Executive of its Allied Esports International subsidiary. Proctor brings three decades of versatile experience across entertainment, technology, and media sectors.

His leadership will focus on maximizing the company’s physical assets—such as the HyperX Arena Las Vegas and the Allied Esports Trucks—to fabricate and deliver innovative experiences across multiple content genres.

The initiative aims to harness the scalability of virtual audiences, positioning Allied as a leader in creating and broadcasting compelling live and virtual content while emphasizing direct audience monetization strategies.

Further objectives include fortifying the Allied brand through experiential, lifestyle, and content offerings, developing proprietary content to build robust partnerships, and enhancing audience engagement via a new consumer platform.

“Rob is an accomplished leader with extensive experience in broadcasting, media, and entertainment. His unique skill set in content creation, global media sales, brand development, and strategic planning aligns perfectly with the new vision for our esports business,” Chen remarked. “I am excited to collaborate closely with him to enhance our company’s cash flow and financial flexibility.”

Additionally, Allied is committed to organic growth by developing complementary businesses while targeting the expansive global gaming market.

The company is exploring opportunities to expand its expertise in location-based entertainment, focusing on gaming lifestyle and experiential offerings. There is also an emphasis on enhancing its digital presence and monetization capabilities through mobile gaming.

More details about these strategic initiatives will be announced at an appropriate time, as Allied continues to navigate this pivotal transformation.

This restructuring follows the resignation of former CEO Jud Hannigan in October; Hannigan, who had been at the helm since February 2017 and previously served as the group’s Senior Vice President, confirmed his exit via LinkedIn.