SPORTEN

US – Penn National buys Score Media and Gaming for US$2bn

Penn National Gaming is buying the Score Media and Gaming for US$2bn in cash and stock as the company looks to develop and own its own sports betting platform.

Jay Snowden, President and Chief Executive Officer of Penn National, said: “We are thrilled to be acquiring theScore, which is the number one sports app in Canada and the third most popular sports app in all of North America. theScore’s unique media platform and modern, state-of-the art technology is a powerful complement to the reach of Barstool Sports and its popular personalities and content.”

De heer Snowden vervolgde: “We bevinden ons nu in een unieke positie om onze klanten naadloos te bedienen met het krachtigste ecosysteem van sport, gaming en media in Noord-Amerika, waardoor uiteindelijk een gemeenschap ontstaat die momenteel niet bestaat. Gebruikers zullen genieten van een uniek mobiel sportweddenschappen- en iCasino-platform met sterk op maat gemaakte weddenschappen en verbeterde in-gaming inzetmogelijkheden, samen met zeer boeiende, gepersonaliseerde sport- en entertainmentinhoud, en realtime scores en statistieken. Wij geloven dat dit krachtige nieuwe vliegwiel zal resulteren in de beste betrokkenheid en retentie in zijn klasse.

“Belangrijk is dat de transactie ons de weg biedt naar volledige controle over onze eigen tech-stack. theScore heeft een geavanceerd spelersaccountbeheersysteem ontwikkeld en legt de laatste hand aan de ontwikkeling van een intern beheerd risico- en handelsserviceplatform. Dit zou moeten leiden tot aanzienlijke besparingen op de platformkosten van derden en ons in staat moeten stellen ons productaanbod te verbreden – wat het ontbrekende stuk zou opleveren om te kunnen opereren met wat naar wij verwachten toonaangevende marges in de sector zullen zijn. Naast de synergieën zullen we toegang krijgen tot theScore's grote hoeveelheid product- en technisch talent en datagestuurde gebruikersanalyses die onze klantenwerving, betrokkenheid, retentiestrategieën en kasstromen zullen helpen stimuleren”, aldus de heer Snowden.

“Operators that have achieved early online market share have done so primarily through first mover advantage, leveraging existing customer databases and significant marketing spend. We believe the long-term winners will be defined by best-in-class products, bespoke content, efficient customer acquisition, multi-platform reach and broad market access,” concluded Mr. Snowden.

John Levy, Chairman and Chief Executive Officer of theScore, said: “This deal brings together two companies that share a vision for how media and gaming intersect, and we could not be more excited to join the Penn National family. I’m proud of theScore team and all of our accomplishments, and believe the time is right to take the next step and align with a company in Penn National with the resources and scale to accelerate our business. We are excited to join forces with Penn to form the most powerful media and gaming company in North America.

“We’ve built an innovative, technology-led integrated media and gaming business that has us poised for success across North America, including the highly anticipated upcoming rollout of commercial sports betting in Canada,” continued Mr. Levy. “With Penn’s support, we will continue to invest in building our Canadian operations, growing our footprint and expanding our workforce. On a personal note, Benjie and I are very much looking forward to continuing to head up theScore as part of the new combined company.

“We have been strategic partners with Penn National since 2019 and have come to realize that they have the same strong culture and appreciation for how to grow a business. Jay and his team have done a tremendous job building an exceptional retail business and online gaming platform in partnership with Barstool Sports and we are confident that by combining our leading sports media brand and proprietary technology, we will solidify Penn National as a market leader,” concluded Mr. Levy.

Jon Kaplowitz, Head of Penn Interactive, commented, “This is a significant milestone for Penn Interactive and Penn National. With the acquisition of theScore, we will have greater ability to innovate and offer a best-in-class product to our customers. Personally, I am excited to join forces with John, Benjie, and the rest of theScore team who have proven to be great partners and amazing thought leaders in our industry.”

Benjie Levy, President and Chief Operating Officer of theScore, commented, “The combination of theScore and Penn National creates a first-of-its-kind vertically integrated media and omni-channel gaming business, which brings together world-class technology, highly engaging sports content and unparalleled reach. With our accomplished team in place, this deal bolsters our ability to grow our already strong North American presence from our base in Canada and primes us even further to capitalize on the huge upcoming betting opportunity in our home country. Over time, we’ve built our loyal user base and relationship with fans by authentically delivering deeply personalized products. That is an approach that seamlessly fits with Penn’s current strategy and digital offerings and will provide for material long-term benefits as we collaborate to even more deeply integrate across our platforms.

“The transaction will provide theScore with immediate scale and resources, the benefits of which will enable employees to better execute on the combined companies’ business plan and deliver enhanced integrated product offerings to our customers,” continued Mr. Levy. “The transaction also provides theScore shareholders immediate liquidity at a substantial premium and an opportunity to participate in any future upside of the combined company.”