USA – It has been announced today that a deal has been struck between Barstool Sports and a horse racing and casino corporation in Pennsylvania; Penn National Gaming.
Penn National Gaming is a Wyomissing-based operator of casinos and racetracks in the US and Canada. The company was founded in 1968 and has an estimated revenue of three billion dollars.
The deal, said to be in the region of $160 million will see the publicly traded company responsible for the Hollywood Casino brand own 36% of Barstool Sports immediately, with an additional 14% to be purchased by 2023 for an estimated sum of sixty million dollars.
Founder of Barstool Sports commented on his excitement surrounding the deal:
“This opportunity is a dream of mine and why I started Barstool Sports in the first place. Barstool Sports has a deep sports and gaming history and from the moment we met Jay and the Penn National team we knew this could be an exciting and game changing partnership and we can’t wait to get started. I think with our shared vision and goals, we are uniquely positioned to be a leader in this business.”
Chief Executive Officer at Penn National Gaming Jay Snowden shared similar sentiments and explains why the deal was made:
“With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database.”
“With 66 million monthly unique visitors, we believe the significant reach of Barstool Sports and loyalty of its audience will lead to meaningful reductions in customer acquisition and promotional costs for our sports betting and online products, significantly enhancing profitability and driving value for our shareholders.”
Penn National Gaming is expected to host a webcast and conference call later today to review the deal and answer questions on the acquisition.