Penn National Acquires Score Media and Gaming
Penn National Acquires Score Media and Gaming
The sports betting industry received massive news on Thursday morning when Penn National announced that it had acquired Score Media and Gaming. Penn National purchased the company for $2 billion in cash and equity.
Penn National has been making significant headway in the mobile betting industry through Barstool Sportsbook. The latest purchase will continue to elevate Penn National to the top of the gaming hierarchy.
Penn National Acquires Score: Details of the Agreement
Penn National purchased the Score with USD and stock options. The total value of the deal was $2 billion. Score shareholders will receive $17 per share and 0.2398 shares of Penn National Common Shares.
When these two are combined, the price per share totaled $34. The board of directors for both conglomerates unanimously approved the contract, and it’s expected to close in the first quarter of 2022.
Penn National will use its existing funds for approximately half of the total. After the announcement of the merger, Penn National and the Score’s stock price went through the roof.
TheScore’s share rose by 72.4% in premarket trading to take advantage of the acquisition. The merger will give Penn National the ability to enhance its current sports betting products.
TheScore is more than a sportsbook. The company made its name in the industry through analytically driven content. This information will be utilized by Penn National, most likely through Barstool Sportsbook.
However, no plans have been revealed by Penn National executives. John Levay, Score Chairman and CEO, was happy to have his company consumed by Penn National.
“I’m proud of theScore team and all of our achievements and believe it’s time to take the next step and work with Pennation’s companies with the resources and scale to accelerate their business. We are building an innovative technology-driven integrated media and gaming business, ready to succeed across North America, including the long-awaited rollout of commercial sports betting in Canada.”
Penn National Turning into Mobile Betting Power
The tools and resources from theScore give Penn National the ability to enhance its current products. Jon Kaplowitz, the leader of Penn Interactive, attested to this fact following the announcement.
“This is an important milestone for Pen Interactive and Pen National. The acquisition of theScore enhances our ability to innovate and deliver best-in-class products to our customers. Personally, John, Benji, and us. We are excited to work with the rest of the scoring team, who have proven to be great partners and great ideological leaders in the industry.”
Penn National expects the acquisition to raise the adjusted EBITDA by the second year of the deal. The medium-term adjusted EBITDA has been projected to increase by over $ 200 million, while the long-term EBITDA will spike by $500 million.
