Penn to Buy Rest of Online Gaming Partner Barstool Sports

Gerry Smith, Bloomberg News

LAS VEGAS, NEVADA - SEPTEMBER 14: Matt DiBenedetto, driver of the #95 Barstool Sports Toyota, stands on the grid during qualifying for the Monster Energy NASCAR Cup Series South Point 400 at Las Vegas Motor Speedway on September 14, 2019 in Las Vegas, Nevada. (Photo by Chris Graythen/Getty Images) Photographer: Chris Graythen/Getty Images North America , Photographer: Chris Graythen/Getty Images North America

(Bloomberg) -- Penn Entertainment Inc. is acquiring the remaining shares of Barstool Sports that it doesn’t already own, giving the casino operator full control of the controversial sports and pop-culture company.

In a filing Wednesday, Penn said it exercised call rights and would complete the purchase of the remaining Barstool shares by February 2023.

In 2020, Penn agreed to buy a 36% stake in Barstool for $161.2 million, part of the growing convergence between sports, media and gambling. Terms of latest deal are detailed in the company’s second-quarter financial results, which said Penn could buy the rest in two steps that total $387 million.

The casino operator, which changed its name from Penn National Gaming this month, has launched sportsbooks under the Barstool brand name and said that has helped the company reach a younger audience.

But the affiliation with Barstool has also brought unwanted to attention. On an earnings call in February, Penn Chief Executive Officer Jay Snowden urged investors to be patient after articles published by Insider detailed sexual misconduct claims against Barstool sports founder Dave Portnoy.

Portnoy has denied the allegations and said that any sexual relations were consensual.