Barstool Sports founder Dave Portnoy explains how he is “trying to build the most progressive sports betting company”.
Penn Entertainment takes over the remainder of Barstool Sports.
The casino operator took full control of the sports website founded by controversial media magnate Dave Portnoy, according to a filing with the US Securities and Exchange Commission on Wednesday. The purchase of the remaining Barstool stock will be completed by February 2023.
The company initially bought 36% of the site for $163 million in 2020 in a deal that combined sports betting and online media. The deal saw Penn buy the remaining shares in a two-step process for $387 million.
Formerly known as Penn National Gaming, the sports betting app launched with Barstool and claims to have reached a younger audience. In February 2021, Penn announced that it had gained over 72,000 registered customers in Pennsylvania after launching the app, which raised nearly $300 million.
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Penn Entertainment is acquiring the remaining interest in Barstool Sports for $387 million. The company was founded by Dave Portnoy in 2003 and operates out of New York City. (Getty Images/Getty Images)
The acquisition of Barstool is another of Penn’s purchases made to solidify its foothold in pop culture, media and gaming. A year ago, the company bought TheScore, a Canada-based digital media company, for $2 billion.
Barstool has a large audience of college-aged young people, which has allowed him to thrive as an entertainment icon. Currently, the site has its own subscription streaming service on Sling TV. Additionally, the company struck a deal to get streaming rights to Major League Baseball games.
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Barstool was founded by Portnoy in 2003 and is headquartered in New York City. The company’s second largest shareholder prior to the Penn buyout was the Chernin Group.
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