PENN partners with ESPN, rebrands sportsbook as ESPN Bet; divests Barstool back to founder

PENN Entertainment, Inc.

Exclusive 10-year (renewable 10) agreement to use ESPN Bet trademark for U.S. online sports betting; rebrand this fall.
PENN to pay ESPN $150M/year in cash over initial term (~$1.5B total) plus warrants for ~31.8M PENN shares.
ESPN receives warrants valued at ~$500M; bonus warrants up to ~6.4M shares if ESPN Bet hits 20-25% market share.
Barstool Sports sold 100% to Dave Portnoy for non-compete covenants; PENN keeps 50% of any future sale proceeds.
PENN estimates long-term Interactive Adj. EBITDA potential of $500M-$1B+ annually from the ESPN partnership.

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