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In a big transfer, David Portnoy, the outspoken founding father of Barstool Sports activities, has efficiently reclaimed possession of his media model from Penn Leisure. Whereas the monetary particulars of the transaction haven’t been disclosed, it’s price noting that Barstool Sports activities had garnered a valuation of $606 million in February throughout Penn’s acquisition of the remaining shares it didn’t personal. This acquisition adopted Penn’s minority possession stake taken up in 2020.
Portnoy, who initially established Barstool Sports activities in 2003, took to social media on Tuesday to announce the dissolution of ties between Barstool and Penn Leisure. The separation entailed an trade the place Penn acquired “non-compete and different restrictive covenants.”
Curiously, the sale of Barstool by Penn coincided with the revelation of a strategic on-line sports-betting partnership with ESPN, a subsidiary of Disney. This information proved to be a game-changer, triggering a powerful surge of over 15% in Penn’s shares throughout after-hours buying and selling.
Notably, the settlement additionally features a clause that grants Penn the entitlement to 50% of the gross proceeds in case Portnoy chooses to both promote or monetize Barstool sooner or later. This stipulation underscores Penn’s continued stake within the model’s potential monetary success.
The event signifies Portnoy’s profitable reclaiming of his brainchild, Barstool Sports activities, from Penn Leisure’s possession. Concurrently, it displays Penn’s strategic redirection in the direction of the profitable realm of on-line sports activities betting. As each entities chart their particular person trajectories, the world watches to see how Portnoy steers Barstool and the way Penn leverages its evolving strategic panorama.
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