David Dennison
I'm a tariff, man.
Penn National Gaming to Buy Minority Stake in Barstool Sports
Penn national gaming spending $163m for a 36% stake, with an option to increase their stake in 3 years. Values company at ~$450m.
Now 36% owned by Penn
28% owned by key employees
36% owned by Chemin Group
Is Penn essentially buying fiercely loyal Barstool fans into its gambling platform? Barstool isn't worth $450m on just the value of its content. I presume the portion being sold is from key employees, but now they don't control their own company. Double edged sword, get paid, but lose control of the company and key employees are now less invested in the company (less reason to stick around).
Penn national gaming spending $163m for a 36% stake, with an option to increase their stake in 3 years. Values company at ~$450m.
Now 36% owned by Penn
28% owned by key employees
36% owned by Chemin Group
Is Penn essentially buying fiercely loyal Barstool fans into its gambling platform? Barstool isn't worth $450m on just the value of its content. I presume the portion being sold is from key employees, but now they don't control their own company. Double edged sword, get paid, but lose control of the company and key employees are now less invested in the company (less reason to stick around).