A couple weeks ago rumors were circulating online that media conglomerate Barstool Sports was selling a minority stake of its company to a casino operator called Penn National, and it turns out the reports were true. On Wednesday, it was officially announced that Penn National Gaming and Barstool Sports have agreed on a deal that values the company at $450 million dollars.

According to the Wall Street Journal, Penn National will first buy a 36 percent stake in Barstool for $163 million in cash and stock, which values the company at $450 million. In 3 years from now, the casino company will then have to pay another $62 million to bring its stake to 50 percent, with the ability to buy controlling ownership for an amount to be determined at the time.

Penn National, which runs & owns dozens of low-profile casinos and hotels around the US, will have exclusive rights to use the Barstool brand in its sports-betting products. They believe they can bring Barstool’s loyal fanbase and traffic to its casinos and upcoming new betting app.

For what its worth, a person briefed on Barstool’s business estimates the company generated between $90 million and $100 million in revenue last year, with the majority coming from podcasts, merchandise sales, and gambling deals. The rich keep getting richer I guess. 

Check out El Pres’ official announcement of the deal (below).

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