Billionaire investor Ron Baron mentioned Tuesday that the latest funding into Barstool Sports activities goes to be a boon for Penn National Gaming
Billionaire investor Ron Baron mentioned Tuesday that the latest funding into Barstool Sports activities goes to be a boon for Penn National Gaming.
Showing on CNBC’s “Squawk Box,” Baron mentioned the deal for the sports activities media firm will carry extra folks to Penn Nationwide’s casinos. Penn Nationwide shares have been up greater than 7% midmorning Tuesday.
“Not solely are they going to make some huge cash on this funding for this $150 million and purchase the remainder of it out from the founder, but additionally it’ll improve the site visitors of their casinos,” Baron mentioned. “It may be price a ton.”
The playing firm introduced final week that it’s paying $163 million to take a 36% stake in Barstool. Penn Nationwide mentioned it should launch a Barstool Sportsbook model, hoping to make use of the media firm’s recognition to extend its market share within the growing sports betting industry.
Baron’s fund owns 8.6% of Penn Nationwide with a market worth as of Monday at $296 million.
As of Monday’s shut, shares of Penn Nationwide had risen 14.1% since final Tuesday, the day earlier than the deal was introduced.
Baron based his funding agency, now often called Baron Funds, in 1982. The agency has roughly $27 billion in property below administration.
Correction: As of the shut Monday, Penn Nationwide shares had risen 14.1% since final Tuesday, the day earlier than the deal was introduced. An earlier model misstated the…