Barstool Sports was recently bought by Penn National Gaming. Here’s a look at who bought the company and why they did it.
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On January 27, 2020, it was announced that Penn National Gaming had acquired a 36% stake in Barstool Sports for $450 million. This valued the company at $1.25 billion. The deal gives Penn National an option to buy a majority stake in the company within three years.
Barstool Sports is a digital media company that was founded in 2003 by David Portnoy. The company is based in Boston, Massachusetts. Barstool Sports focuses on sports and pop culture. It has a website and a YouTube channel. The company also has a radio show, “Dialed In”, on Sirius XM satellite radio.
The deal with Penn National has been criticized by some because of the gambling industry’s history of targeting vulnerable people, such as people with gambling addiction. However, Penn National has said that it will not promote gambling to minors and that it will take steps to prevent problem gambling.
In January 2020, Barstool Sports was purchased by Penn National Gaming in a deal that valued the company at $450 million. Penn National acquired a 36% stake in Barstool Sports, with the option to buy a majority stake within three years. The deal was struck amid concerns that cord-cutting would lead to declining revenues for traditional media companies.
Barstool Sports is a digital media company that focuses on sports and pop culture. It was founded in 2003 by David Portnoy, and it has since become one of the most popular sports media brands in the world. The company generates revenue through advertising and sponsorships, and it also has a merchandising arm.
The deal with Penn National is seen as a way for Barstool Sports to tap into the gaming industry, which is expected to grow in the coming years. Penn National operates casinos and racetracks across the United States, and it also has a substantial online gaming business. The company plans to launch an online casino in Pennsylvania later this year.
The partnership between Barstool Sports and Penn National is seen as a way to reach millennials, who are increasingly interested in gambling but may not be traditional casino goers. The two companies will launch co-branded online casino and sports betting products under the Barstool Sports brand.
Penn National Gaming, Inc. (NASDAQ: PENN) (“Penn National” or the “Company”) and Barstool Sports, Inc. (“Barstool”) today announced that they have entered into a definitive agreement for Penn National to acquire a 36% equity interest in Barstool for $163 million in cash, with an option to acquire up to an additional 36% of Barstool on the same terms after three years. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close by the end of January 2021.
On Wednesday, it was announced that Penn National Gaming had purchased a 36 percent stake in Barstool Sports for $163 million. The company plans to give Barstool full control of its media and content, with the goal of incorporating sports betting into its programming.
So why would a gaming company want to invest in a sports media outlet? There are a few reasons.
For one, Penn National has more than 50 million loyalty program members, which it can use to promote Barstool’s products and content. And although sports betting is currently only legal in a handful of states, it is expected to become more widespread in the coming years. As more states legalize sports betting, Penn National will be in a good position to capitalize on the growing market.
In addition, Penn National knows that it needs to appeal to a younger demographic if it wants to stay relevant in the gaming industry. By partnering with Barstool Sports, Penn National is able to tap into the millennial and Gen Z market, which is notoriously difficult to reach through traditional advertising channels.
Barstool Sports also has a strong digital presence, with millions of followers across its various social media platforms. This gives Penn National a way to reach potential customers where they are already spending their time online.
Finally, Penn National sees Barstool Sports as a way to diversify its business beyond just gaming. Although gaming will always be the core of its operations, investing in Barstool Sports gives Penn National exposure to other areas such as media and sports betting. This diversification will help the company weather any potential downturns in the gaming industry in the future.
Now that Barstool Sports has been bought by Penn National Gaming, what’s next for the popular sports and culture blog?
The new partnership will allow Penn National Gaming to reach a wider audience through Barstool Sports’ digital media platforms, which include a website, podcast network and social media channels. The company plans to launch a new branded casino gaming product with Barstool Sports in the second half of 2019.
It’s unclear what exactly this new product will entail, but it’s likely that it will be some sort of online gambling platform that will be integrated with Penn National Gaming’s existing casino properties. This could give the company a significant advantage over its competitors in the rapidly growing online gambling market.
The partnership between Penn National Gaming and Barstool Sports is sure to be a lucrative one, but it remains to be seen how it will affect the content on Barstool Sports’ website and podcasts. Some worry that the site will become more mainstream and lose its edgy appeal, but only time will tell.
As of February 2020, Barstool Sports is now valued at $450 million. This valuation is thanks in large part to their majority stakeholder, Penn National Gaming. Penn National Gaming is a casino and horse racing company that saw the value in Barstool Sports’ huge and loyal following. It’s clear that Penn National Gaming sees Barstool Sports as a valuable asset that will help them tap into the millennials and Gen Z market. Only time will tell if this investment will pay off for Penn National Gaming, but they are certainly betting big on Barstool Sports.