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Wednesday, January 29, 2020

Casino to Acquire Interest In Barstool Sports For $163M

Dave Portnoy, Barstool Sports
PA Casino operator Penn National Gaming has acquired a 36% interest in digital sports media company Barstool Sports for $163 million, the Philadelphia Business Journal reports.

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 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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