Penn National Gaming announced on Tuesday that it has completed the purchase of Score Media and Gaming.
The acquisition of theScore solidifies Penn Gaming’s digital media and gaming strategy by creating a a one-stop entertainment destination.theScore is the most popular sports media app in Canada and the third in North America.
Said Penn National Gaming President Jay Snowden in a statement:
“We’re excited to be creating this powerful new entertainment flywheel that will provide us with multiple growth channels that transcend our current business verticals. We look forward to entering the Canadian gaming market, which represents a compelling new opportunity, and are proud to have John Levy and his family and their entire team bring their best-in-class technology, unique perspective and skill sets to our Penn National family.”
Purchase Was to Complement Sports Betting Assets
Last August, Penn National Gaming announced that it will be purchasing Score Media and Gaming for $2 billion. According to the announcement, Penn National wil pay Score Media share holders $34 per share in a mix of stock and cash. Score Media share holders will receive $17 cash per share plus 0.2398 shares of Penn National common stock for each Score share.
The purchase was intended to complement Penn National Gaming’s investments in sports betting. In January 2020, Penn National Gaming bought a 36% stake in Barstool Sports for $163M and since then Barstool Sports has spun out a betting app.
Two Powerful Sports Media Assets
With the acquisition of Score Media, Penn National Gaming will get the company’s estimated 4 million daily active users, including one thirds of which are located in Canada, where sports betting is limited to parlay bets. However, two-thirds of the users are in the United States across Colorado, Indiana, Iowa, and New Jersey.
Pairing theScore and Barstool Sports gives Penn National Gaming two of the most powerful and unique sports media assets which have the capability to generate engagement, customer acquisition, and retention across its media and gaming properties.