Penn purchases remainder of Barstool Sports for $387 million
Dave Portnoy founded Barstool Sports in 2003
Barstool's Dave Portnoy on sports betting operation
Barstool Sports founder Dave Portnoy explains how he is 'trying to build the most forward thinking sports gambling company.'
Penn Entertainment is taking over the rest of Barstool Sports.
The casino operator took full control of the sports website founded by the controversial media tycoon Dave Portnoy, according to a US Securities and Exchange Commission filing on Wednesday. The purchase of the remaining Barstool share will be completed by February 2023.
The company initially purchased 36% of the website in 2020 for $163 million in a deal that combined sports gambling and online media. The deal stipulated that Penn could buy the remaining shares via a two-step process for $387 million.
Formerly known as Penn National Gaming, launched the Sportsbook app with Barstool and claims to have reached a younger audience. In February 2021, Penn revealed it gained over 72,000 registered customers in Pennsylvania following the launch of the app, which generated nearly $300 million.
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Penn Entertainment is purchasing the remaining shares of Barstool Sports for $387 million. The company was founded by Dave Portnoy in 2003 and operates out of New York City. (Getty Images / Getty Images)
The acquisition of Barstool is another purchase by Penn met to solidify its standing in the pop culture, media, and gambling space. A year ago, the company purchased TheScore, a Canadian-based digital media company, for $2 billion.
Barstool has a large audience of young college-aged individuals that have allowed it to thrive as an entertainment icon. Currently, the site has its own subscription streaming service on Sling TV. Moreover, the company made a deal to have streaming rights for Major League Baseball games.
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Founded by Portnoy in 2003, Barstool is headquartered in New York City. The second-largest stockholder in the company before the Penn buyout was the Chernin Group.
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