PENN Entertainment Finalises Deal for Barstool Sports
The much-anticipated acquisition of Barstool Sports by PENN Entertainment has finally been completed, signaling what is likely to lead to ambitious growth plans over the next couple of years.
In February 2020, PENN bought 36 percent of Barstool for $163 million, with there always being an understanding that this would likely lead to a full takeover at some point in the future.
Such interest was registered last August when the company expressed its intention to complete a takeover, with this having finally closed for a fee of $388 million.
Easy Decision for PENN
There is no doubt that Barstool represented a considerable magnet for PENN; the fact that it already had partial ownership would have also helped to smooth negotiations, though it is obvious that Barstool has become a major player in the sports media industry.
Barstool is a proven, powerful media brand with an authentic voice and vast, loyal audience that provides us with a strong top of the funnel for new customer acquisition and organic cross-selling opportunities across our growing interactive division.
There is also the fact that Barstool’s ‘theScore’ product has a highly engaged and ever-growing user base, something that can assist in considerably helping the brand to grow further over the next few years, while the migration to PENN’s proprietary technology stack only enhances the potential growth of the digital footprint.
While both companies have a solid reputation in the iGaming industry, PENN’s full acquisition of Barstool will enable it to focus fully on more strategic market penetration.
Can PENN Make Its Mark in the Industry?
The extent to which PENN can now capitalize in the iGaming industry will certainly be interesting. Over the last few years, it has almost been operating under the radar, despite being somewhat of a conglomerate.
It operates over 40 casinos and racetracks across the US, while it has also built a thriving online footprint, making it the largest omnichannel provider of entertainment experiences in America.
The full takeover of Barstool Sports now means that it can continue to grow its presence in the online gambling industry, fully leveraging the potential of Barstool assets, in addition to the strength of its brand.
Which markets that it decides to concentrate on will be interesting. While the US is dominated by the likes of FanDuel and DraftKings online, Barstool has actually built up a presence in the LATAM market - particularly Mexico.
Now under new ownership, it could see the brand target the US market with force and really pose a challenge to the elite. The next couple of years could be intriguing.
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