Penn National Gaming to Take Over theScore

On August 5, 2021, Penn National Gaming announced that the company has entered into a definitive agreement with Score Media and Gaming for the acquisition of the corporation. The reported deal is worth US$2 billion, and theScore shareholders will receive US$17 in cash and 0.2398 shares of Penn National Gaming common stock for each of theScore’s shares.

Score Media and Gaming is a leading Canadian-based digital media, sports betting, and technology company headquartered in Toronto. The company provides services on live scores, news, stats, and betting information from their favorite teams, leagues, and players. Its betting app theScore Bet is currently, deployed in New Jersey, Colorado, Indiana and Iowa, and provides sports fans and gamblers with a complete and captivating mobile wagering experience.

US$2 Billion Deal

 

According to the agreement between the two industry giants, theScore shareholders will receive US$17.00 in cash and 0.2398 shares of Penn National Gaming common stock for each of their shares. This suggests a total purchase consideration of US$34 per theScore’s share based on Penn National’s 5-day volume average trading price as of July 30, 2021.

The agreement was approved unanimously by the Board of directors of both firms and it is on schedule to be finalized in the first quarter of 2022. After the completion of the transaction, Penn National and theScore will be in possession of around 93% and 7% respectively of the company’s outstanding share. The buyers should fund approximately US$1 billion cash of the consideration from its cash on its balance sheet.

President and Chief Executive Officer of the buyers, Jay Snowden, commented the company is excited to be purchasing the Canadian company, which offers the number one sports app in Canada. He also said that the company’s cutting-edge technology and exceptional media platform will greatly complement their Barstool Sports, popular personalities, and catalog of contents.

John Levy, Chairman and Chief Executive Officer of theScore said the agreement joins the efforts of the companies that have a common vision of how media and gaming cross paths. He also said that the company is extremely happy to join Penn National’s team and he believes that the deal is the right step forward for the company to further develop its growth strategies and plans.

Recent Deal

Most recently theScore acquired the services of the Canadian recreational sports firm named Canlan Sports. With the deal, the Toronto-based gaming company will help out the latter by promoting its brand across Canada. The agreement will go into power this fall, and the gaming leader will assume sport-surface title sponsorship for Canlan Sports’ six Ontario Sports Complexes.

Preparing for Single-Sports Betting

The company is also looking forward to the introduction of single-game wagering as Bill C-218 has been passed at the Canadian Senate and it has received Royal Assent. CEO of the gaming company Mr. Levy is optimistic about the change and believes that with it Ontario could become equal to the fifth-largest gaming jurisdiction in the U.S.

Source: “Penn National Gaming to Acquire Score Media and Gaming, Creating North America’s Leading Digital Sports Content, Gaming and Technology Company”, Business Wire, August 5, 2021

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Yolina has followed closely the latest development on the Canadian gaming scene over the past years, monitoring the land-based, lottery, and online offerings up for grabs. The dynamic nature of the local lottery and casino fields, as well as the opportunities lying ahead of Canada fire her enthusiasm for what is to come. A sports betting enthusiast, in her spare time Yolina could be found in her natural habitat – turning the pages of biographies and catching up on the latest stand-up comedy podcasts.