Dave Portnoy Welcomes Back Full Ownership Of Barstool Sports, Calls Penn-ESPN Deal Win-Win: 'I Am Never Going To Sell'
Portfolio Pulse from Chris Katje
Penn Entertainment (NASDAQ:PENN) is selling 100% of Barstool Sports back to its founder, Dave Portnoy, in exchange for certain non-compete and other restrictive covenants. This comes after Penn acquired the remaining stake in Barstool Sports for over $500 million through transactions in 2020 and 2023. The divestiture is part of Penn's partnership with ESPN, which Portnoy has described as a win-win. Penn will receive 50% of any sale proceeds or dividends Barstool Sports pays out.
August 09, 2023 | 4:36 pm
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NEGATIVE IMPACT
Penn Entertainment is divesting its entire stake in Barstool Sports back to its founder, Dave Portnoy. This could potentially impact Penn's revenues and stock price.
The divestiture of Barstool Sports could potentially impact Penn's revenues and stock price in the short term. However, the partnership with ESPN could offset this impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
ESPN, owned by Disney (NYSE:DIS), is entering into a partnership with Penn Entertainment. This could potentially boost ESPN's revenues and Disney's stock price.
The partnership with Penn Entertainment could potentially boost ESPN's revenues and, in turn, Disney's stock price. However, the impact will depend on the success of the partnership.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80