Barstool has completed a deal with Penn National Gaming that sees it immediately sell 36 percent of the company’s stake for $163 million.
Penn National is a large gambling company that operates Plainridge Park casino in Plainville, Mass.
In a statement, Penn National chief executive Jay Snowden said, "With 66 million monthly unique visitors, we believe the significant reach of Barstool Sports and loyalty of its audience will lead to meaningful reductions in customer acquisition and promotional costs for our sports betting and online products, significantly enhancing profitability and driving value for our shareholders.”
“This opportunity is a dream of mine and why I started Barstool Sports in the first place,” Dave Portnoy said in a statement. “Barstool Sports has a deep sports and gaming history and from the moment we met Jay and the Penn National team we knew this could be an exciting and game changing partnership and we can’t wait to get started."
The deal values Barstool at $450 million total. According to the Wall Street Journal, Penn National Gaming will pay another $62 million in three years to bring its stake to 50 percent, with the ability to buy controlling ownership for an amount to be determined at the time.