• Home
  • News
  • Investment
  • Penn Entertainment CEO hails Barstool Sports acquisition as purchase price exceeds $550m
igamingnext photo
Penn Entertainment has today completed the acquisition of Barstool Sports after previously acquiring a 36% stake in the company back in February 2020.

Penn, which operates the Barstool Sportsbook in the US online sports betting market, acquired the remaining interest for approximately $388m, taking the total purchase price to around $550m.

Background on Barstool

Founded in 2003 as a free sports and gambling newspaper by controversial online personality Dave Portnoy, Barstool has evolved into a leading digital platform of sports, lifestyle, and entertainment content across the US.

With more than 200 million followers on social media, the company creates and delivers sports and comedy content through its extensive network of over 100 shows and podcasts.

This network has been utilised as a low-cost customer acquisition channel for Penn in recent years.

The Barstool Sportsbook is currently live in 15 states, with Penn also having launched retail branded Barstool Sportsbooks at its land-based properties across the US.

“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.”

Penn Entertainment CEO Jay Snowden said: “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.”

Penn has adopted a similar strategy north of the border in Canada by acquiring leading sports media business theScore and using the brand for its sportsbook offering in Ontario.

“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,” added Snowden.

Migration latest

Penn completed the transition to its in-house tech platform for theScore Bet in Canada in July.

US-facing Barstool Sportsbook is also set to migrate onto the operator’s in-house tech beginning Q3 2023. The offering is currently powered by Kambi.

Kambi will receive one-time fees of $12.5m for early termination and $15m for transition services as part of the agreement.

Despite the additional costs, Snowden said the sportsbook would benefit from the upcoming migration as it would “significantly enhance the overall product offering”.

Barstool founder Portnoy, who boasts nearly three million followers on Twitter, said: “Barstool Sports is bigger than ever and has become more than I ever dreamed of.”

Contribution positive

In the three years since Penn first invested in the company, Barstool Sports has grown its audience by 194% and recorded total podcast downloads of 1.6 billion.

Penn’s online casino gaming and sports betting (Interactive) division was contribution positive in Q4 2022, for the first time in company history, after delivering adjusted EBITDA of $5.2m.

Similar posts