PENN Entertainment Pays $388M for Remaining Stake in Barstool Sports

More than 20 years after David Portnoy founded Barstool Sports as a free gambling newspaper in Boston, MA the media and gambling company is now fully owned by PENN Entertainment.

After first buying a 36% stake in Barstool in January 2020, PENN, a casino operator and entertainment company led by CEO and President, Jay Snowden, has acquired the remaining 64% interest for approximately $388 million.

In 2020, PENN, then known as Penn National Gaming, paid $163 million for the 36% stake, comprised of about $135 million in cash and $28 million in non-voting convertible preferred stock, with previous owner the Chernin Group left with the same percentage stake.

Portnoy had sold majority control of Barstool to Peter Chernin’s Chernin Group in 2016. That initial agreement included a path for PENN to establish full control and ownership of Barstool.

Since its partial acquisition was first completed, PENN has seen its digital footprint and revenue soar. The Barstool audience has grown 194% since it joined with PENN, the company said, and boasts more than 200 million followers on its various platforms.

PENN owns 43 properties and is valued at approximately $5.03 billion. In addition to its long-term acquisition of Barstool, the company spent $2 billion to buy Score Media in 2021. TheScore is one of the top sports information sites in Canada. Its betting app is also available in Colorado, Indiana, Iowa and New Jersey.