I saw this tweet today:
$551M, according to this tweet, is not a whole lot of money, and in the practice of buying potential customers it really isn't. With low interest rates and inflationary markets, return on investment for this kind of purchase can be positive in the space.
JUST IN: Penn has completed its 100% acquisition of Barstool.— Darren Rovell (@darrenrovell) February 17, 2023
THREE years ago, they bought 36% for $163 million, acquires rest for $388 million.
To buy Barstool for $551 million is a ridiculous steal, though Penn's strategy of converting by advertising less hasn't proved out.