PENN Entertainment completes acquisition of Barstool Sports
PENN has acquired the remaining interest in Barstool Sports for approximately $388m.
US.- Penn Entertainment has completed its previously announced acquisition of Barstool Sports. It had already acquired a 36 per cent stake in February 2020. It has acquired the remaining interest for approximately $388m.
Since investing in Barstool Sports, PENN has developed an omnichannel strategy for the firm’s brand. Barstool Sportsbook is currently live in 15 states, with Penn also having launched retail-branded Barstool Sportsbooks at its properties in the US.
Penn Entertainment CEO and president, Jay Snowden, said: “We are extremely pleased to welcome Barstool Sports fully into the Penn Entertainment family. 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 theScore’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.”
Dave Portnoy, founder of Barstool Sports, added: “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.”
Erika Ayers, CEO of Barstool Sports, commented: “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’s exciting to have that vision recognized and to be able to put it to work inside of Penn. We have the best fan base on the planet, and we look forward to doing even more for them with Penn’s support.”
Penn Entertainment reports $1.6bn in revenue for Q4
Penn Entertainment has published its fourth-quarter financial results. It reported revenue of $1.6bn, an increase of 0.8 per cent compared to the same period in 2021. Net income was $20.8m, down on the $44.8m reported in Q4 2021.
Adjusted EBITDAR decreased 2.5 per cent year-on-year to $468.3m, although adjusted EBITDA (not including rent) was up 18.8 per cent from Q4 2022 at $438.3m. Penn’s adjusted EBITDAR margin of 29.5 per cent marked a 110bps decline year-on-year, however, the company noted that its omnichannel engagement had helped it achieve stable results for the final quarter of 2022.
