Influential Media Brand Strengthens PENN’s
Growing Digital Sports, Gaming and Entertainment Portfolio
PENN Entertainment, Inc. (Nasdaq: PENN) (“PENN” or the
“Company”) today completed its previously announced acquisition of
Barstool Sports, Inc. (“Barstool Sports” or “Barstool”) after
previously acquiring a 36% stake of Barstool Sports in February
2020. PENN has acquired the remaining interest in Barstool Sports
for approximately $388 million.
The closing of the acquisition marks a major 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 leading digital player in sports,
lifestyle, and entertainment. With over 200 million loyal
followers, the company creates and delivers unmatched sports and
comedic content through its extensive network of over 100 shows and
90+ personalities. Its content offerings span podcasts, video,
social media, live events, pay-per-view, and a growing commerce
business, solidifying its position as a multimedia powerhouse.
Since partnering with Barstool Sports in 2020, PENN has
successfully developed an omnichannel strategy that leverages
Barstool’s well-known brand and personalities. Barstool Sportsbook
has grown to become a leading online betting platform currently
live in 15 states, with PENN also having launched retail branded
Barstool Sportsbooks at its properties across the country. PENN and
Barstool Sports will continue to innovate and collaborate,
including across Barstool’s sports bar footprint, to deliver
compelling integrated gaming and entertainment experiences.
“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.”
“This is a huge moment for Barstool Sports that was made
possible by a lot of people and a lot of grit,” said Erika Ayers,
CEO of Barstool Sports. “Our focus has always been to create
relevant and entertaining content for our fans and to deliver
strong results for our partners. It’s exciting to have that vision
recognized and to be able to put it to work inside of PENN. We have
the best fan base on the planet, and we look forward to doing even
more for them with PENN’s support.”
In the past three years since PENN first invested in the
company, Barstool Sports has:
- Grown its audience 194% and recorded total podcast downloads of
1.6B.
- Delivered over 875K videos across social media totaling over
128 billion video views.
- Increased ad sales by 160%.
- Sold over 5 million units, including apparel, licensed products
and accessories, by combining a direct-to-consumer approach and
bringing the brand to thousands of 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.
- 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% 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.
About PENN Entertainment
PENN Entertainment, Inc. (Nasdaq: PENN) is North America’s
leading provider of integrated entertainment, sports content and
casino gaming experiences. PENN operates 43 properties in 20
states, online sports betting in 16 jurisdictions and iCasino in
five jurisdictions under a portfolio of well-recognized brands
including Hollywood Casino®, L’Auberge®, Barstool Sportsbook® and
theScore Bet Sportsbook and Casino®. PENN’s highly differentiated
strategy, which is focused on organic cross-sell opportunities, is
reinforced by its investments in market-leading retail casinos,
sports media assets, technology, including a state-of-the-art,
fully integrated digital sports and online casino betting platform,
and an in-house iCasino content studio. The Company’s portfolio is
further bolstered by its industry-leading mychoice® customer
loyalty program, which offers our approximately 26 million members
a unique set of rewards and experiences across business channels.
PENN is deeply committed to fostering a culture that welcomes a
diverse set of customers and dedicated team members. The Company
has been consistently ranked in the top two as “Employer of First
Choice” over the last nine years in the Bristol Associates-Spectrum
Gaming’s Executive Satisfaction Survey. In addition, as a
long-standing good corporate citizen, PENN is also committed to
being a trusted and valued member of its communities and a
responsible steward of our finite natural resources.
About Barstool Sports
Barstool Sports is one of the most influential sports, lifestyle
and entertainment media brands on the internet. With a rich 20-year
history, Barstool creates innovative, comedic content with massive
distribution on multiple platforms, including podcasts, video,
social, live events, pay-per-view and subscription. To date, the
brand has one of the most highly coveted, fiercely loyal, and
incredibly engaged audiences, reaching over 200M fans across social
and rapidly growing. Since the beginning Barstool Sports has always
been about giving back to the community, raising millions of
dollars for those in immediate need. The Barstool Fund, launched in
the early days of the pandemic to assist small businesses who were
impacted, raised over $40M.
Forward Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements can be identified by the use of
forward-looking terminology such as “expects,” “believes,”
“estimates,” “projects,” “intends,” “plans,” “goal,” “seeks,”
“may,” “will,” “should,” or “anticipates” or the negative or other
variations of these or similar words, or by discussions of future
events, strategies or risks and uncertainties. Specifically,
forward-looking statements include, but are not limited to,
statements regarding: the Company’s expectations regarding its
acquisition of Barstool Sports and the future success of its
products; the Company’s expectations with respect to the
integration and synergies related to the Company’s integration of
Barstool Sports; the continued growth and monetization of the
Company’s media business; the Company’s expectation regarding
continued innovation and collaboration; and the Company’s expected
migration to its proprietary technology stack and associated
benefits.
Such statements are all subject to risks, uncertainties and
changes in circumstances that could significantly affect the
Company’s future financial results and business. Accordingly, the
Company cautions that the forward-looking statements contained
herein are qualified by important factors that could cause actual
results to differ materially from those reflected by such
statements. Such factors include: the effects of economic and
market conditions in the markets in which the Company operates;
competition with other entertainment, sports content, and casino
gaming experiences; the timing, cost and expected impact of product
and technology investments; the Company may not be able to achieve
the anticipated financial returns from the transaction due to fees,
costs and taxes in connection with the integration of Barstool
Sports; states may not pass legislation approving online and retail
sports books and iCasino products; potential adverse reactions or
changes to business or regulatory relationships resulting from the
announcement or completion of the transaction; the outcome of any
legal or regulatory proceedings that may be instituted against the
Company, Barstool Sports or their respective directors, officers or
employees; the ability of the Company or Barstool Sports to retain
and hire key personnel; the impact of new or changes in current
laws, regulations, rules or other industry standards; risks
relating to permits, licenses, financings, approvals and other
contingencies in connection with growth in new or existing
jurisdictions; and additional risks and uncertainties described in
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2021, subsequent Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K, each as filed with the U.S. Securities
and Exchange Commission. The Company does not intend to update
publicly any forward-looking statements except as required by law.
Considering these risks, uncertainties and assumptions, the
forward-looking events discussed in this press release may not
occur.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230216005763/en/
Eric Schippers Senior Vice President, Public Affairs PENN
Entertainment 610/373-2400
Joseph N. Jaffoni, Richard Land JCIR 212-835-8500 or
penn@jcir.com
PENN Entertainment (NASDAQ:PENN)
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