Please Wait, Loading Content...

Penn Entertainment could put Barstool Sports up for sale

Barstool SPorts one of the Penn brands in the new loyalty program

There has been speculation that Penn Entertainment may eventually put Barstool Sports up for sale if a big enough gap opens between what was paid for the sports brand and what is offered for it.

Back in February 2020, the well-known North American operator and provider of integrated entertainment, casino, and sports experiences acquired a 36% stake in Barstool Sports, a top digital media and sports website, for $163 million.

Last month, Penn bought the remaining 64% of the sports media property for $364 million. This brings the total purchase price to $527 million, which is considered to be a significant discount compared to the expected market value of founder Dave Portnoy’s firm.

During the announcement, the CEO and president of Penn Entertainment, Jay Snowden, expressed his enthusiasm for Barstool Sports joining the “Penn Entertainment family.” He emphasised the trust and reliability of the sports website and digital media within the sports vertical.

Snowden also recognised the acquisition’s potential for new growth opportunities for Penn and how it complements the company’s interactive division.

In a recent interview with John Wall Street, Lloyd Danzig, the managing partner of Sharp Alpha Advisors, said the acquisition of Barstool Sports is expected to bring benefits for Penn Entertainment.

During the interview, Danzig explained that Penn Entertainment paid approximately $525 million for Barstool Sports’ complete interest. Given that Barstool Sports was estimated to be worth between $800 million and $1 billion, the Danzig and industry analysts said this was a favourable deal for Penn Entertainment.

However, recent reports suggest that reselling the sports media property may yield even greater value for the company’s stakeholders.

Barstool Sports, which includes the sports betting site Barstool Sportsbook, is a hot commodity in US sports betting because it has a predominantly young audience.

More betting news

, ,
Share this post on:

Join the Betting Planet team!

Are you passionate about sports betting? Sports news writers required TODAY!

Experienced preferred but not essential. (All apps considered).

View Careers at Race Media
  • Live Betting Odds
  • Claim a 50% deposit bonus up to the value of USD $250

Top Online Casinos

  • Bitcoin Friendly
    100% up to $3000