Remaining Barstool shares go for $325m to gaming company

Barstool Sports will be under new ownership by February of next year.

Casino operator Penn Entertainment Inc. has exercised its right to buy the remaining shares of the controversial sports media giant for a total of $325 million, according to Wednesday’s SEC filing reviewed by DailyMail.com. Penn (formerly: Penn National Gaming) initially bought 36 percent of Barstool at a cost of $161.2 million in 2020.

Barstool had already made the jump from sports media to gaming with the help of Penn, which has already launched sports books under the website’s brand. 

Barstool was acquired at a valuation of $650 million, which some saw as a bargain. 

‘I bet Spotify would pay $1.5 billion for Barstool in a minute,’ tweeted sports business reporter Darren Rovell.  

While the raunchy sports- and sex-themed media company may have helped Penn reach younger gamblers, it also brings its own baggage.

Barstool founder, 45-year-old Dave Portnoy, was accused of sexual misconduct in a Business Insider expose, alleging that he had violent and aggressive sexual encounters with women, some of whom he filmed without their consent. Portnoy has denied the claims, insisting the article was a ‘hit piece.’

Portnoy has since sued Insider, claiming its reporting was ‘false and defamatory.’

Regardless, Penn Chief Executive Officer Jay Snowden still felt compelled to quell shareholders’ fears during an earnings call in February. Snowden told his audience to ‘give this time to play out’ according to Bloomberg.

‘There undoubtedly will be more to come in the coming days, just as what transpired three months ago,’ Snowden said, as quoted by Bloomberg.

It’s unclear how much Portnoy would profit, personally, from the deal. In addition to his pizza reviews and financial advice, Portnoy is also known to boast about his personal wealth, which reportedly sits anywhere from $80 million to $120 million, depending on the source. 

Portnoy was subject to a 2019 National Labor Relations Board investigation over Twitter posts claiming that he threatened to fire workers if they unionized. He ultimately reached an informal settlement with the Board, but suffered no significant financial penalty.