Penn National Gaming acquires Score from Score Media for approximately $2.0 billion in cash and stock, Score shares rise 65% premarket

Penn National Gaming Inc. PENN,
said Thursday it has agreed to acquire theScore, a digital media and sports betting company, from Toronto-based Score Media and Gaming Inc. SCR,
for approximately $2.0 billion in cash and stock. Under the terms of the deal, TheScore shareholders will receive $17 in cash and 0.2398 Penn shares for each holding of theScore shares, equivalent to $23 per share based on Penn National’s five-day volume-weighted average trading price on July 30. approved by the boards of directors of both companies and is expected to be completed in the first quarter of 2022. Penn plans to fund the cash portion of the approximately $1 billion deal with existing cash. Penn Chief Executive Jay Snowden said theScore is the leading sports app in Canada and the third most popular in all of North America. “theScore’s unique media platform and modern, state-of-the-art technology is a powerful addition to Barstool Sports’ reach and its popular personalities and content,” he said in a statement. Shares of Score Media rose 65% premarket after resuming trading after a deal news stop. Penn shares were up 0.6% premarket but are down 23% this year as the S&P 500 SPX,
won 17%.