Barstool bets
Emailed on January 31st 2020 in The Friday Forward
Barstool Sports, the sports media site, has agreed to sell a 36% interest stake in its business to casino operator Penn National Gaming. That’s approximately $163 million in cash and convertible preferred stock. The deal would value Barstool at $450 million.
What’s interesting here is that Penn National isn’t exactly focused on Barstool’s content (which it's widely known for). It’s looking more at monetizing their audience. The partnership would allow Penn National to market its products to Barstool’s audience of nearly 66 million monthly unique visitors. According to Vox, Barstool generated between $90 million and $100 million in revenue last year, with the majority coming from podcasts, merchandise sales, and gambling deals.
The U.S. Supreme Court cleared the way in 2018 for states to legalize sports betting, striking down a 1992 federal law that had banned the practice in most states. Many sports publishers, including Bleacher Report, ESPN and Sports Illustrated, have established content verticals dedicated to sports betting.
This is a space to watch as more and more sports media moguls look to monetize via sports betting. Considering Barstool, started by Dave Portnoy and lead by CEO Erika Nardini, originated as a sports betting blog before expanding into the broader content category, they're well positioned to become a market leader.
