PENN, Disney’s ESPN $1.5B deal scores with investors
Barstool Sports activities founder and President Dave Portnoy joined ‘Varney & Co.’ to debate self-checkout tip kiosks, the inventory market, and the upcoming match between Manchester Metropolis and Actual Madrid.
PENN Leisure shareholders are completely happy after the sports activities and media firm introduced a $1.5 billion partnership with Disney’s ESPN to create a sports activities betting firm.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| PENN | PENN ENTERTAINMENT INC. | 27.39 | +2.55 | +10.28% |
PENN shares rallied by double digits Wednesday, serving to minimize the 7% drop within the inventory this yr.
PENN can pay the media big’s sports activities arm $1.5 billion in money over 10 years to rebrand its present sportsbook and relaunch as ESPN BET this fall within the 16 authorized betting states the place PENN is licensed.
ESPN can be granted $500 million of warrants to buy round 31.8 million frequent shares of PENN inventory in change for media, advertising companies, model and different rights supplied by the sports activities media big.
Different playing shares, together with Draftkings, MGM and Caesars, fell on the information.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| DKNG | DRAFTKINGS INC. | 28.73 | -2.98 | -9.41% |
| MGM | MGM RESORTS INTERNATIONAL | 45.99 | +0.29 | +0.63% |
| CZR | CAESARS ENTERTAINMENT INC. | 56.07 | -0.53 | -0.94% |
As a part of the deal, PENN bought Barstool Sports activities again to founder Dave Portnoy.
“PENN Leisure and Barstool Sports activities have gone our separate methods…As of this second, when you are watching this video, I’ve bought again Barstool Sports activities from PENN. That’s proper: For the primary time in a decade, I personal 100% of Barstool Sports activities.”
“PENN Leisure and Barstool Sports activities have gone our separate methods,” Portnoy stated in a video on X, previously generally known as Twitter. “As of this second, when you are watching this video, I’ve bought again Barstool Sports activities from PENN. That’s proper: For the primary time in a decade, I personal 100% of Barstool Sports activities.”
Dave Portnoy of Barstool Sports activities attends the UFC 281 occasion at Madison Sq. Backyard on Nov. 12, 2022, in New York Metropolis. (Jeff Bottari/Zuffa LLC / Getty Pictures)
Portnoy stated he has “nothing however essentially the most respect” for the PENN workforce. Nevertheless, Portnoy admitted being related to PENN didn’t permit for the content material the platform was used to creating.
“The regulated business most likely not one of the best place for Barstool Sports activities and the kind of content material we make,” Portnoy stated. “PENN was capable of dealer an unbelievable cope with ESPN. We want them nothing however one of the best of their endeavors. It’s actually a win-win.
The ESPN emblem on a digital camera earlier than the sport between the Air Pressure Falcons and the Washington State Cougars on Dec. 27, 2019, at Chase Discipline in Phoenix, Arizona. (Kevin Abele/Icon Sportswire through / Getty Pictures)
“For the primary time in eternally, we don’t have to look at what we are saying, how we discuss, what we do. It’s again to the pirate ship. By the best way, I’m by no means going to promote Barstool Sports activities. Ever.”
The Barstool Sportsbook part of the on line casino Hollywood On line casino in Morgantown, Pennsylvania, on Dec. 17, 2021. (Ben Hasty/MediaNews Group/Studying Eagle through Getty Pictures)
PENN paid an estimated $388 million for complete management of Barstool Sports activities in February after initially shopping for a 36% stake within the firm in February 2020, per Fortune. PENN and Barstool Sports activities introduced their sports activities betting partnership in early 2020.
In the meantime, shares for ESPN mum or dad firm Walt Disney are little modified this yr, trailing the 17% bounce for the S&P 500.
The corporate will report earnings Wednesday after the closing bell.
