What Buying Barstool Sports Means for Penn National Gaming
Penn National Gaming (NASDAQ: PENN), the regional casino company, bought a 36% stake in closely held Barstool Sports for $163 million on Jan. 29 -- $135 million in cash and $28 million in nonvoting convertible preferred stock -- valuing Barstool at $450 million.
Barstool agreed that Penn will be its exclusive gaming partner in all sports-betting products. Additionally, the Barstool brand may be used in all Penn casinos, and Penn may launch Barstool sports bars or restaurants.
The Chernin Group, owners of 60% of Barstool Sports, will own a lesser stake of 36% after the deal closes, the companies said. Barstool employees will own the rest.
Source Fool.com
