{"id":125559,"date":"2020-01-28T23:47:23","date_gmt":"2020-01-29T07:47:23","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=125559"},"modified":"2020-01-29T09:08:03","modified_gmt":"2020-01-29T17:08:03","slug":"penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/","title":{"rendered":"Penn National Paying $163 Million for Barstool Sports Minority Stake, Could Eventually Become Outright Owner"},"content":{"rendered":"

Penn National Gaming (NASDAQ: PENN), one of the largest regional gaming companies, will reportedly dole out $163 million to take a 36 percent position in David Portnoy’s Barstool Sports<\/i>, a brash sports and pop culture blog.<\/p>\n

\"\"
Barstool founder David Portnoy will be able to afford a lot more pizza if reports of Penn National acquiring part of his firm are accurate. (Image: Daily Mail)<\/figcaption><\/figure>\n

The deal ends nearly three weeks of speculation<\/a> that the owner of the Tropicana on the Las Vegas Strip was eyeing Barstool<\/i>. Under the terms of the transaction, Penn National will pay $135 million in cash and $28 million worth of stock for the interest in the media company. That values it at $450 million, reports Dow Jones Newswires<\/i>, which cited unidentified sources with knowledge of the matter.<\/p>\n

\n

In three years, the operator of casinos under the Argosy and Hollywood brands, among others, will increase its Barstool<\/i> stake to 50 percent for another $62 million payment. There are kickers and sweeteners in the deal terms that could lead to the gaming company eventually taking full control of media concern.<\/p>\n<\/div>\n

A request for comment to a Penn National executive from Casino.org <\/i>wasn’t responded to prior to publication of this article. The company is based in Pennsylvania.<\/p>\n

Everyone’s Happy?<\/h2>\n

With the $450 million valuation, Portnoy isn’t the only one reaping a windfall. The Chernin Group (TCG), a California-based investment firm specializing in media companies, made a $25 million investment in Barstool <\/i>in 2016 and 2018, valuing the media property at $10 million to $15 million, and then at $100 million.<\/p>\n

For Penn National, the company gets access to Barstool <\/i>fans and readers \u2013 66 million, according to Dow Jones \u2013 <\/i>many of whom are younger, web-savvy gamblers<\/a> looking to place sports bets online or with mobile devices.<\/p>\n

\n

Via advertising, merchandise sales and its betting contests, Barstool <\/i>generated $90 million to $100 million in revenue last year, reports the Wall Street Journal. <\/i>Assuming that number is accurate, the media group would be a small, but potentially potent part of Penn National’s portfolio. The company posted third-quarter turnover of $1.35 billion.<\/p>\n<\/div>\n

Portnoy, famous for his pizza affinity and abrasive, controversial viewpoints, is expected to stay with the company following the Penn deal.<\/strong><\/p>\n

Probably Not The Last<\/h2>\n

The possible Penn\/Portnoy marriage isn’t the first of its kind. In an effort to leverage its FoxBet brand, Fox Sports took a five percent stake<\/a> in The Stars Group (TSG) last year.<\/p>\n

One media report out late Tuesday anointed daily fantasy sports (DFS) companies DraftKings and FanDuel as winners in the Penn\/Barstool<\/i> deal.<\/strong><\/p>\n

For FanDuel, that’s not an unreasonable theory, because it’s already widely known that its parent company \u2013 Flutter Entertainment Plc \u2013 is trying to acquire TSG for $12.2 billion. Assuming that deal is consummated, it could give FanDuel some access to FoxBet.<\/p>\n

As for DraftKings, that company has been mentioned as a potential takeover target.<\/a> But for a gaming company looking to fill in online betting and sports wagering voids, not necessarily for a traditional media company.<\/p>\n","protected":false},"excerpt":{"rendered":"

Penn National Gaming (NASDAQ: PENN), one of the largest regional gaming companies, will reportedly dole out $163 million to take a 36 percent position in David Portnoy’s Barstool Sports, a brash sports and pop culture blog. The deal ends nearly three weeks of speculation that the owner of the Tropicana on the Las Vegas Strip […]<\/p>\n","protected":false},"author":46,"featured_media":125561,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[32093,1074],"tags":[],"acf":[],"yoast_head":"\nPenn National Is Buying Stake in Barstool Sports, Valuing it at $450 Million<\/title>\n<meta name=\"description\" content=\"Penn National Gaming is reportedly buying a minority interest in Barstool Sports and could eventually become the majority owner of the blog.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Penn National Is Buying Stake in Barstool Sports, Valuing it at $450 Million\" \/>\n<meta property=\"og:description\" content=\"Penn National Gaming is reportedly buying a minority interest in Barstool Sports and could eventually become the majority owner of the blog.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-29T07:47:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-01-29T17:08:03+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/portnoy.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1908\" \/>\n\t<meta property=\"og:image:height\" content=\"1146\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/\",\"url\":\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/\",\"name\":\"Penn National Is Buying Stake in Barstool Sports, Valuing it at $450 Million\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/portnoy.jpg\",\"datePublished\":\"2020-01-29T07:47:23+00:00\",\"dateModified\":\"2020-01-29T17:08:03+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Penn National Gaming is reportedly buying a minority interest in Barstool Sports and could eventually become the majority owner of the blog.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/penn-national-is-buying-stake-in-barstool-sports-valuing-it-at-450-million\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/portnoy.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/01\/portnoy.jpg\",\"width\":1908,\"height\":1146,\"caption\":\"Barstool founder David Portnoy will be able to afford a lot more pizza if reports of Penn National acquiring part of his firm are accurate. 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