After a few weeks of rumors, Barstool has a new corporate stakeholder.
According to a Wall Street Journal report, casino company Penn National will purchase a minority share in Barstool for $135 million in cash and $28 million in stock in a deal that values Barstool at $45o million.
Via Katherine Sayre and Benjamin Mullin at WSJ:
The deal, to be announced Wednesday, would give Penn National exclusive rights to use the Barstool brand in its sports-betting products. Penn National would pay $135 million in cash and $28 million of its stock in a deal that values Barstool Sports at $450 million.
In three years, Penn National, with a market value of roughly $3 billion, will increase its stake to around 50% for a payment of $62 million. Penn National and Barstool have options that kick in then that would increase the casino company’s stake to control or full ownership, based on fair market value at the time, the people said.