PENN Entertainment Stock Soars On ESPN Deal, Selling Barstool Sports Back To Dave Portnoy: The Details
Portfolio Pulse from Adam Eckert
PENN Entertainment Inc has entered into an exclusive U.S. online sports betting agreement with Walt Disney Co's ESPN. As part of the deal, Penn has secured exclusive rights to the ESPN Bet trademark for online sports betting in the U.S. for an initial 10-year term. Penn will pay ESPN $1.5 billion for the initial 10-year term and grant ESPN approximately $500 million in warrants to purchase 31.8 million shares of Penn common stock. Penn also sold 100% of the Barstool Sports Inc common stock back to Dave Portnoy.
August 08, 2023 | 8:51 pm
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POSITIVE IMPACT
The deal with PENN Entertainment could have a positive impact on Walt Disney Co's stock in the short term.
The deal with PENN Entertainment provides Walt Disney Co's ESPN with $1.5 billion for the initial 10-year term and approximately $500 million in warrants to purchase Penn common stock. This could have a positive impact on Disney's stock in the short term.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
PENN Entertainment's stock is likely to rise in the short term due to the exclusive deal with ESPN.
The exclusive deal with ESPN is a significant development for PENN Entertainment. It not only provides the company with exclusive rights to the ESPN Bet trademark but also opens up new avenues for customer acquisition and retention. This is likely to have a positive impact on the company's stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100