'Dave Portnoy Bought Back Barstool Sports For $1; Penn Entertainment Estimates That It Will Take A Loss Of As Much As $850M On Barstool.' - The Hollywood Reporter
Portfolio Pulse from Happy Mohamed
Dave Portnoy has bought back Barstool Sports from Penn Entertainment for $1. Penn Entertainment, which spent $551 million to acquire Barstool, expects to record a loss of between $800 million-$850 million on the deal. Penn has also announced a deal with ESPN to rebrand its Barstool Sportsbook as ESPN Bet, for which it will pay ESPN $1.5 billion and $500 million in stock warrants.
August 09, 2023 | 9:52 pm
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NEGATIVE IMPACT
Penn Entertainment's decision to sell Barstool Sports back to its founder for $1, after acquiring it for $551 million, is expected to result in a significant loss. This could negatively impact the company's stock price in the short term.
The significant loss that Penn Entertainment is expected to incur from the sale of Barstool Sports could negatively impact investor sentiment and lead to a decrease in the company's stock price. Additionally, the company's decision to rebrand its sportsbook and pay a large sum to ESPN could also influence its financial performance and stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100