ESPN to receive US$ 2B by creating sports betting firm with Penn
Friday 11 de August 2023 / 12:00
⏱ 1 min read
(Las Vegas).- ESPN on Wednesday announced a US$ 2 billion deal with Penn Entertainment to launch ESPN Bet, a new sports betting shop. Disney's sports division, one of its most valuable assets, creates a new exclusive brand.
This new agreement will allow Penn Entertainment, according to both parties, to have the exclusive right to use the ESPN Bet trademark for a period of ten years, which can be extended for a further ten years if an agreement is reached between the parties.
According to Penn Entertainment, ESPN will pay us$1.5 billion in the first period of the agreement to ESPN. The remaining us$500 million will be paid as warrants for Disney to purchase approximately 31.8 million shares of Penn common stock, which can be increased to an additional 6.4 million if a number of targets are met.
The deal will be implemented "beginning this fall" in the 16 states in which Penn Entertainment is licensed to operate. The rebranding will be visible on the mobile app, website and mobile website.
According to early estimates, the project has "significant value creation potential", as it "provides an estimated potential for us$500 million to us$1 billion of annual adjusted EBITDA over the long term", Penn said.
Following the announcement, ESPN president Jimmy Pitaro said the main objective of the deal is "to serve sports fans and we know they want betting content and the ability to place bets with less friction from our products".
Penn Entertainment counterpart Jay Snowden said the partnership with ESPN allows them to "take another step forward as an industry leader" and will allow them to use their full potential to provide the best possible experience for their customers.
By Rodrigo Cardona
Categoría:Sportsbook
Tags: ESPN,
País: United States
Región: North America
Event
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