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Danny Jacobs
Penn Entertainment Inc. said Wednesday that it has exercised a redemption option on all outstanding shares of Barstool Sports Inc. to take 100% ownership of Barstool.
The acquisition of the remaining Barstool stake is expected to close in February 2023, the casino and online sports betting operator said, according to a securities filing. Barstool will become a Penn subsidiary.
Penn acquired a 36 percent stake in Barstool two years ago. Dave Portnoy started Barstool, a gambling newspaper in Boston in 2003. Now it produces online content, podcasts and videos. Its popularity has grown in recent years, attracting a cult following among its fans, many of them young.
In March, gambling regulators in Nevada and Indiana said they were investigating Barstool and Penn National after he denied allegations of sexual misconduct against Mr Portnoy.
Penn Chief Executive Jay Snowden said in March that the company backed Mr Portnoy and remained confident that Barstool’s media appeal was key to the company’s future in sports betting and digital media.
Write to Denny Jacob at denny.jacob@wsj.com
Correct and enlarge
This article was corrected at 6:55 PM ET to reflect that Penn Entertainment Inc. is a casino and online sports betting operator. The original article said it was an e-sports company.
Casino and online sports betting operator Penn Entertainment Inc. said the acquisition of the remaining stake in Barstool is expected to close in February 2023, according to a securities filing. At 5:06 p.m. ET, “Penn Entertainment increases stake in Barstool Sports to 100% ownership,” mislabeling Penn as an esports company.
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