After making a name change to Penn Entertainment earlier this month, the company is taking full control of one of its main sports betting brands.
Last week, Penn Entertainment disclosed in an SEC filing that it was exercising its call rights to take 100% ownership of Barstool Sports. Penn acquired an original 36% share of Barstool for $163 million in 2020 and recently spent an additional $62 million investment for 50% ownership.
Penn plans to purchase the rest of the shares by February 2023 and will have paid approximately $550 million for Barstool Sports. The Q2 Penn investor presentation this month said the deal will fully unlock Barstool’s value.
Penn sports betting entertainment empire
The company’s initial investment in Barstool was to help cut down on marketing costs on a branded Barstool Sportsbook. Barstool has a built-in fanbase that consumes a massive amount of content and consumer product lines.