Renowned for his forthright disposition, David Portnoy, the founder extraordinaire of Barstool Sports, once more reigns as the proprietor of his media enterprise, having reacquired it from the clutches of Penn Entertainment.
The pecuniary worth of this transaction, unveiled on a Tuesday, remains shrouded in obscurity, withholding its immediate revelation. Cast back to the annals of February, Barstool Sports garnered a valuation of $606 million, the same month that witnessed Penn’s acquisition of the unowned residue of the corporation. Dating back to 2020, Penn embarked on its role as a minority stakeholder.
Portnoy, a visionary who breathed life into Barstool Sports in the year 2003, articulated on the aforementioned Tuesday through the written word that Penn and Barstool had embarked on divergent paths, each tracing its independent trajectory. As per Penn’s elucidation, the process of divestment culminated, duly exchanged for stipulations that constrained competition and imposed other restrictions.
Coinciding with the divestiture of Barstool, Penn simultaneously unveiled an online sports-betting partnership, the recipient of which was none other than the Disney-affiliated ESPN. This revelation served as the catalyst, propelling the value of Penn’s shares upwards by a staggering 15% during the twilight hours of trading that followed.
In the eventuality that Portnoy opts to relinquish ownership of Barstool or opts to convert it into a monetizable entity, Penn is poise to claim a handsome 50% share of the gross revenue, as articulated within the official proclamation.