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| Dave Portnoy, Barstool Sports |
As part of the deal, Wyomissing-based Penn National gains exclusive rights to use Barstool’s brand for its online and retail sportsbooks. The deal puts Barstool's valuation at about $450 million.
Barstool Sports is a sports and entertainment company geared toward young men, boasting millions of followers across its social media networks. Barstool Sports has approximately 66 million unique visitors each month, with a mostly Millennial and Generation X audience, the company said in a release. Penn National CEO Jay Snowden said in a statement that Barstool’s brand and “deep roots” in sports betting will help the casino company to attract a new and younger demographic.
Penn National operates 41 gaming properties across 19 states. The company inked a deal with multiple tech companies in 2019 to bolster its online sports betting presence, as it lags behind other local casino entities.
The Chernin Group, which previously owned 60% of Barstool after buying a majority stake in the company in 2016, will now own 36% of the media company, and Barstool employees will own the remaining 28%.
Penn National’s purchase of 36% equity comprises a $135 million cash deal and $28 million in non-voting convertible preferred stock. The casino operator will up its stake in Barstool to 50% over three years following an incremental investment of $62 million.
Penn National Gaming, North America’s largest regional gaming operator, teams up with @barstoolsports, America’s most influential sports lifestyle brand, to create a one-of-a-kind sports betting experience.https://t.co/DlDOPBA4VU pic.twitter.com/r6lORkNWM3— Penn National Gaming (@PNGamingInc) January 29, 2020
Penn National will also have two seats on Barstool’s seven-person board of directors. The deal is expected to close in the first quarter of 2020.
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