Penn Entertainment, Inc. completed its previously announced acquisition of Barstool Sports, Inc. after securing a three percent stake in Barstool Sports in February 2020. Penn realized the remaining interest in Barstool Sports for approximately $388 million.
The closing of the acquisition marks a milestone for Barstool Sports as it celebrates its 20th anniversary. Founded in 2003 as a free sports and gambling newspaper by Dave Portnoy, Barstool has evolved into a digital player in sports, lifestyle and entertainment. The company creates sports and comedic content through its network of over 100 shows and 90-plus personalities.
Since partnering with Barstool Sports in 2020, Penn has developed an omnichannel strategy that leverages Barstool’s brand and personality. Barstool Sportsbook has grown to become an online betting platform currently live in 15 states, with Penn also having launched retail-branded Barstool Sportsbooks at its properties across the U.S. Penn and Barstool Sports will continue to collaborate, including across Barstool’s sports bar footprint.
“We are extremely pleased to welcome Barstool Sports fully into the Penn Entertainment family,” said Penn Entertainment CEO and president, Jay Snowden. “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.”
“Barstool Sports is bigger than ever and has become more than I ever dreamed of,” said Dave Portnoy, founder of Barstool Sports. “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.”
In the past three years since Penn first invested in the company, Barstool Sports reported it has:
- grown its audience 194 percent and recorded total podcast downloads of 1.6 billion;
- delivered over 875,000 videos across social media totaling over 128 billion video views;
- increased ad sales by 160 percent;
- sold over 5 million units, including apparel, licensed products and accessories, by combining a direct-to-consumer approach and bringing the brand to retail stores nationwide;
- Expanded its live event programming, including producing and broadcasting its first Division I college basketball games (Barstool Sports Invitational) and the Barstool Arizona Bowl college football game; and
- Launched TwoYay, its proprietary NIL marketplace, connecting athletes to brands and agencies.
Penn and Barstool Sports initially announced an exclusive sports betting and iCasino partnership in January 2020, with Penn acquiring 36 percent of Barstool Sports on February 20, 2020 for a total consideration of approximately $163 million, comprised of approximately $135 million in cash and $28 million in non-voting convertible preferred stock. The initial agreement included a path for Penn to establish full control and ownership of Barstool Sports.
