Barstool Sports has a new investor. Following up on rumors of a deal, Penn National Gaming has taken a minority stake in the sports media company, which includes a popular podcast network. The agreement will see casino operator Penn National take on a 36% interest stake for about $163 million in cash and convertible preferred stock. After three years, Penn National will increase its stake to 50% through an investment of $62 million. It will have the option to bring on a partner that would acquire some of its Barstool Sports shares at that time.
This move currently leaves the Chernin Group with its own 36% interest. Barstool Sports employees will own the remaining shares. The purchase is due to close in the first quarter of 2020.
“Over the last five years, Barstool Sports has brought its audience, creativity and expertise to the biggest sports betting and DFS operators in the country with great results,” CEO Erika Nardini said in a statement. “The chance to combine our content and fans with Penn National’s massive footprint, and to develop a unique and compelling omni-channel approach together, was for us a no brainer.”