Toronto-based Score Media and Gaming sold to Penn National in $2B deal
Deal sent Score's share price up 80 per cent, Penn National to continue running theScore out of Toronto
Toronto-based Score Media and Gaming Inc. is being acquired by U.S.-based Penn National Gaming Inc. in a $2 billion US cash and stock deal.
The deal announced Thursday will bring together Score Media's popular theScore mobile sports news app, as well as its betting services in four U.S. states, with Penn National's dozens of gaming and racing properties across 20 states.
The acquisition of Score Media and Gaming adds to Penn National's holdings in sports media after it bought a 36 per cent stake in Barstool Sports Inc. in 2020.
"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," said Jay Snowden, chief executive of Penn in a release. "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."
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The deal will see Score Media and Gaming shareholders getting $17 a share in cash plus 0.2398 of a Penn National stock for each theScore share, making the deal roughly half in cash.
News of the deal sent Score's share price up more than 80 per cent, or $14.69, to $32.83 in mid-afternoon trading on the Toronto Stock Exchange.
John Levy, chief executive of theScore, said in a statement that the timing was right to join with a company of Penn National's resources and scale.
"This deal brings together two companies that share a vision for how media and gaming intersect," said Levy. "With Penn's support, we will continue to invest in building our Canadian operations, growing our footprint and expanding our workforce."
Penn National says it plans to operate theScore as a stand-alone business that will remain headquartered in a Toronto-office.
The deal comes as Canada moves toward legalized single event sports betting after the Senate passed Bill C-218 in June.
The Alcohol and Gaming Commission of Ontario says it expects there to be an internet gaming market in the province by the end of the year.