Penn National Gaming has announced the completion of the acquisition of 36% interest in Barstool Sports for US$163 million.
US.- Penn National Gaming has completed its previously announced acquisition of a 36% interest in Barstool Sports, Inc. for total consideration of approximately US$163 million, comprised of approximately US$135 million in cash and US$28 million in non-voting convertible preferred stock.
Penn National is now Barstool Sports’ exclusive gaming partner and has the sole right to utilize the brand for all of its online and retail sports betting and iCasino products. Penn National will increase its ownership in Barstool Sports to approximately 50% after three years (or earlier, at Penn National’s election) with an incremental investment of approximately US$62 million, consistent with the implied valuation at the time of the initial purchase, and has a path to establish control and full ownership of Barstool Sports.
Jay Snowden, President and Chief Executive Officer of Penn National, commented: “Since announcing our groundbreaking partnership with Barstool at the end of January, we have seen first-hand the power of the Barstool brand to generate significant consumer interest and increased engagement between Barstool, their loyal audience of ‘Stoolies’ and our own nationwide platform of 41 properties in 19 states. Our two teams have hit the ground running and are working on plans to roll out the Barstool Sportsbook brand through both our retail sportsbooks and our interactive products.
“In addition, our interactive product development team is continuing its work towards the launch of our new sports betting app which is planned for August. We share the excitement of Dave Portnoy, Erika Nardini and the entire team at Barstool Sports and looks forward to creating what will be the industry’s best-in-class omni-channel provider of retail and online gaming and sports betting entertainment.”