Penn Entertainment has closed a deal regarding a previously announced plan to acquire Barstool Sports. The transaction began in February 2020 when Penn purchased a 36% stake in the company.
At the completion of the sale, Penn purchased the remaining interest in the company for nearly $388m.
This year marks Barstool Sports’ 20-year anniversary. The free sports and gambling publication was founded by Dave Portnoy in 2003 and has since grown to offer its 200-million-member fanbase online video content, as well as podcasts and social media coverage.
Barstool Sports Founder Dave Portnoy took a moment to reflect on the company’s success and on its future with Penn: “Barstool Sports is bigger than ever and has become more than I ever dreamed of.
“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.”
The two companies first partnered in 2020 and have since launched Barstool Sportsbook in 15 US states. As a result of the collaboration, Penn has extended its media reach through omnichannel development.
Penn said the collaboration with Barstool will continue now that the purchase is complete. The two will continue delivering integrated entertainment and gaming options to their customers across Barstool’s sports bar locations.
Penn Entertainment President and CEO Jay Snowden commented: “We are extremely pleased to welcome Barstool Sports fully into the PENN Entertainment family. 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.”
Barstool Sports CEO Erika Ayers described the acquisition as a “huge moment” for the company and said the group will continue its commitment to create quality content as part of the Penn family.