PENN Entertainment (PENN) stock was up as much as 25% late Tuesday after the company and ESPN (DIS) announced a blockbuster sports betting deal that will see ESPN officially enter the sports betting space.
The company also said in a press release it had sold Barstool Sports back to its founder, Dave Portnoy. PENN initially purchased a 36% stake in Barstool for $163 million back in 2019; earlier this year, the company purchased the balance of Barstool for an additional $388 million.
As part of the deal, PENN will pay ESPN $1.5 billion over the next 10 years, with ESPN holding warrants to purchase roughly 32 million shares of PENN worth $500 million, which will vest over the same period.
This is breaking news. More to come.
