Barstool sells its remaining stake to PENN Entertainment to complete a buyout initiated two years ago. The $388 million transaction when Barstool is celebrating its two-decade-old existence after starting from humble beginnings as a free newspaper.
Following its initial acquisition of a 36% stake in Barstool in 2020, PENN Entertainment has finally completed buying the remaining shares in a lucrative deal worth approximately $388 million. The initial arrangement was signed back in January 2020, featuring an exclusive sports betting and iCasino partnership, with PENN Entertainment acquiring a 36% stake in Barstool for about $163 million.
Of the $163 million, $135 million was paid in cash, while $28 million was paid as non-voting preferred stock. Chernin Group, who were the owners of a similar 36% stake, now exit the scene as the full honors of ownership fall in the hands of PENN Entertainment.
Following the full Barstool buyout, Jay Snowden, the PENN Entertainment CEO and President, released a media statement saying:
Quote“Barstool is a proven, powerful media brand with an authentic voice and vast loyal audience that provides us with a strong top of funnel for new customer acquisition and organic cross-selling opportunities across our growing interactive division. Barstool, combined with the Score’s reach and highly engaged user base, creates a massive digital footprint and ecosystem that will serve to propel Barstool sportsbook and our uniquely integrated media and gaming business. Further, the Barstool sportsbook will greatly benefit from the upcoming migration to our proprietary technology stack, a move that will significantly enhance the overall product offering and deliver meaningful upside.”
Marking Barstool’s 20th Anniversary in Style
As Barstool completes its iconic acquisition, the gaming outfit is also celebrating its 20th anniversary. Dave Portboy founded the company two decades ago as a free sports and gambling newspaper, then gradually evolved by expanding its portfolio of products and services. With a strong following going into hundreds of millions, the company has grown into a global brand renowned for its strong standing in sports and pop culture.
Following the acquisition by PENN Entertainment, Mr. Dave Portnoy shared a few words about the company he founded, saying:
Quote“Barstool Sports is bigger than ever and has become more than I ever dreamed of. I’m very thankful to the Barstool team and Stoolies, who have been along for the ride. I’m looking forward to this next chapter with PENN.”
On her part, Erika Ayers, the Barstool Sports CEO, heaped praises on the buyout and the company’s future potential in a press statement as follows:
Quote“This is a huge moment for Barstool Sports that was made possible by a lot of people and a lot of grit. Our focus has always been to create relevant and entertaining content for our fans and to deliver strong results for our partners. It is exciting to have that vision recognized and to be able to put it to work inside of PENN. We have the best fanbase on the planet, and we look forward to doing even more for them with PENN’s support.”
PENN’s Huge Bet on Barstool is Paying Off Big Time
When the PENN-Barstool deal initially came to the public spotlight, there were concerns among many factions about its suitability for both parties. Some industry insiders even initially thought that PENN was overpaying for Barstool. 2 years later, with Barstool now firmly under the umbrella of PENN, it is fair to say that most of those fears were allayed successfully.
Another worrying aspect of the deal was Barstool’s founder Portnoy’s penchant for controversy. For instance, the charismatic Barstool founder, who never shies away from the limelight, took to Twitter to vehemently critique the Supreme Court’s decision to overturn the Roe vs. Wade ruling that conferred the right to choose to have an abortion. That wasn’t all. The founder has been previously accused of sexual misconduct by the financial publication the Insider, which ran an article detailing all these allegations.
However, no criminal charges have ever been brought against Mr. Portnoy, and he promised to sue the publications that brought forth all the allegations. The controversies aside, for now, Portnoy’s immediate plans seem to be getting away from New York and pitching camp in the Sunshine State. The business mogul feels his finances may be at risk of interference in the Empire State.
Outside the bad press, PENN’s relationship with Barstool has been mutually beneficial. Here’s how the dynamic duo has benefitted from teaming up over the past two years:
Video slots have improved since the days of the three-reel slot games, with a greater number of paylines and ways to win, and superb features all designed to keep you playing. Knowing how these work can guide you to maximise your potential profits.
Kate Gavrilenko of Platipus Gaming explains how slot mathematical models are built, balancing RTP, volatility, probabilities, payouts and bonus features for successful games.
Let’s look at three exclusive welcome bonuses available to online players through GamblersPick. Grab any of the following exclusive promotions and start playing at trusted, reviewed online casinos with generous offers available regularly.
Casinos
Games
Jackpots
