Penn National Gaming on Thursday said it has entered a definitive agreement to acquire Score Media and Gaming, the Canadian digital media and sports betting and technology company known as theScore, for approximately $2 billion in cash and stock.
Jay Snowden, the president and CEO of Penn National Gaming, said theScore will operate as a standalone business, according to the CDC Gaming Reports’ Last Call. That’s similar to Penn National Gaming’s arrangement with Barstool Sports, which was purchased in January 2020 for $450 million.
“This transaction reflects the deep respect we have had for theScore brand over the years and what John’s family has created,” Snowden said Thursday. “We have known the Levy family for years, and like our Barstool acquisition, we don’t want to come in and change who they are which is what has made them so successful.”
Based in Toronto, Ontario, theScore was founded by Levy in 2012. It delivers sports scores, data, news, and sportsbook offerings through its mobile app, and was launched in part to compete with TSN, the Canadian sports specialty channel, the story said. According to Joseph Greff, an analyst with J. P. Morgan, theScore’s app is No. 1 in Canada and the third most popular in North America.
Portnoy said he has used theScore’s app for years and previously met with Levy to talk about a partnership. But at the time, Portnoy and Nardini lacked the resources to strike a deal, the story said.
The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the first quarter of 2022. Upon completion of the transaction, current Penn National and theScore shareholders will hold approximately 93% and 7% respectively, of the company’s outstanding shares, according to the story.
“We feel like we have two of the premier sports media brands in North America,” Snowden said. “Our business model’s a bit different from everyone else. I sort of look at what the competitors are doing the space as a rental model, and we’re planning to buy and to build something that’s really differentiated, but still for the long term.”
CNBC.com reported that Shares of Score Media and Gaming, which operates theScore, closed up 79.9% Thursday after Penn National announced the acquisition. Shares of Penn National closed up 9%.
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