American betting group Penn National Gaming has announced that they've purchased a minority stake in sports media company Barstool Sports for $163 million.
Penn National will front up $135 million in cash and provide $28 million worth of non-voting shares of stock. In three years, the company will up their stake to 50% by paying an additional $62 million. The purchase will give Penn National exclusive rights to use the Barstool brand for betting products, providing a well-known American service for players to attach to. Penn has been working with Kambi to expand sportsbetting services at their properties, and it's likely we'll see the first fruits of this relationship later in the year.
Barstool founder Dave Portnoy issued a video regarding the purchase, which can be found below.
PNG CEO Jay Snowden spoke about the deal, noting: "With its leading digital content, well-known brand and deep roots in sports betting, Barstool Sports is the ideal partner for Penn National and will enable us to attract a new, younger demographic, which will nicely complement our existing customer database."