Ault Global Purchases Minority Stake In NTN Buzztime To Stop Gaming Asset Divestment

Ault Global Holdings, Inc (NYSE: DPW) acquired a 9.96% stake in NTN Buzztime, Inc (NYSE: NTN) for $1.01 million or $3.42 per share as of January 29.
The purchase price signifies a 37.9% discount to NTN’s Wednesday closing price.
Ault acquired the stake to prevent NTN from selling assets to eGames.com Holdings by forming a merger with Brooklyn ImmunoTherapeutics.
According to Ault, NTN’s assets, especially the gaming assets and customer lists, are significantly undervalued by the transaction.
NTN decided to divest the assets to finance its working capital requirements after the pandemic jeopardized its subscription revenue, advertising revenue, and cash flow base.
NTN has organized a special stockholder meeting on March 15 to ratify the merger and the asset sale. At the same time, AULT intends to stop the divestment by not voting at the meeting.
Ault had raised $125 million in an upsized secondary offering yesterday.
Price action: DPW shares are down 12% at $6.90 in the pre-market session on the last check Thursday. NTN shares are up 2.54% at $5.65.