Penn Entertainment has finalized its acquisition of Barstool Sports, marking a significant milestone in its strategic expansion. Having initially acquired a 36% stake in Barstool Sports in February 2020, Penn Entertainment has now secured the remaining interest by investing approximately $388 million. The integration of Barstool Sports into Penn’s portfolio has paved the way for a comprehensive omnichannel strategy, enhancing both companies’ reach and engagement in the interactive gaming and media industry.
Barstool Sports’ Transition and Growth:
The completion of the acquisition signifies the culmination of Penn Entertainment’s endeavor to bring Barstool Sports under its full ownership. In the period since its initial investment, Penn has strategically aligned Barstool Sports as an integral part of its omnichannel approach. This strategic move has seen the expansion of the Barstool Sportsbook into 15 states, alongside the establishment of retail-branded Barstool Sportsbooks at Penn’s US properties.
Penn Entertainment’s Vision:
Jay Snowden, CEO and President of Penn Entertainment, expressed his enthusiasm about fully integrating Barstool Sports into the company’s ecosystem. The acquisition underscores the immense value that Barstool Sports brings to the Penn Entertainment family, providing a robust platform for customer acquisition and cross-selling opportunities across the growing interactive division. The synergies between Barstool Sports and theScore’s engagement further enrich the digital footprint, propelling the Barstool Sportsbook and the integrated media and gaming business forward.
Founders’ Perspectives:
Dave Portnoy, the founder of Barstool Sports, expressed gratitude to both the Barstool team and its dedicated supporters for the journey thus far. Portnoy highlighted the evolution of Barstool Sports, which has transformed into a significant media brand that extends beyond his initial expectations. Erika Ayers, CEO of Barstool Sports, emphasized the collaborative effort that led to this moment, noting that the recognition of Barstool’s vision by Penn Entertainment opens the door for further innovation and engagement.
Penn Entertainment’s Q4 Financial Performance:
In addition to the acquisition news, Penn Entertainment shared its financial performance for the fourth quarter. The company reported $1.6 billion in revenue, a marginal increase of 0.8% compared to the same period in 2021. Despite a decrease in net income compared to Q4 2021, Penn’s adjusted EBITDAR and EBITDA demonstrated resilience, reflecting a balanced outcome for the final quarter of 2022. The company attributed this stability to its successful omnichannel engagement strategy.
Penn Entertainment’s acquisition of Barstool Sports reflects a strategic synergy that aligns with the evolving dynamics of the gaming and media industry. The integration not only strengthens Penn’s presence in the market but also showcases the power of collaborative efforts between companies with complementary strengths. As Penn Entertainment charts its course with the enriched portfolio, the successful transition of Barstool Sports marks a significant chapter in the industry’s ongoing transformation.