Allied Esports Entertainment moves closer to selling esports business
Allied Esports Entertainment, which owns HyperX Esports Arena on the Strip, is one step closer to selling off its esports business, company executives said Monday.
The company has entered into a nonbinding letter of intent with a third party to sell its esports business, Lyle Berman, co-chairman of the board of directors for Allied Esports Entertainment, told investors on a Monday earnings call. Berman said the company cannot share any other additional details just yet.
The company has not been shy in exploring a possible sale of its esports business. Company CEO Claire Wu said in August that it was something they were looking into after seeing significant outside interest in the sector in response to esports’ popularity growth during the pandemic.
But the cost of running an esports company is also part of that calculation, Berman said Monday.
“It wasn’t an easy decision for us. While we have made great strides in the esports business, it’s still definitely cash burning,” Berman said when asked what drove the decision to sell.
Contact Colton Lochhead at clochhead@reviewjournal.com. Follow @ColtonLochhead on Twitter.