Penn Entertainment is taking over the rest of Barstool Sports.
The casino operator took full control of the sports website founded by the controversial media tycoon Dave Portnoy, according to a US Securities and Exchange Commission filing on Wednesday. The purchase of the remaining Barstool share will be completed by February 2023.
The company initially purchased 36% of the website in 2020 for $163 million in a deal that combined sports gambling and online media. The deal stipulated that Penn could buy the remaining shares via a two-step process for $387 million.
Formerly known as Penn National Gaming, launched the Sportsbook app with Barstool and claims to have reached a younger audience. In February 2021, Penn revealed it gained over 72,000 registered customers in Pennsylvania following the launch of the app, which generated nearly $300 million.
The acquisition of Barstool is another purchase by Penn met to solidify its standing in the pop culture, media, and gambling space. A year ago, the company purchased TheScore, a Canadian-based digital media company, for $2 billion.
Barstool has a large audience of young college-aged individuals that have allowed it to thrive as an entertainment icon. Currently, the site has its own subscription streaming service on Sling TV. Moreover, the company made a deal to have streaming rights for Major League Baseball games.
Founded by Portnoy in 2003, Barstool is headquartered in New York City. The second-largest stockholder in the company before the Penn buyout was the Chernin Group.