Barstool Sports activities Founder Dave Portnoy Claims Intercourse Tape Hurting PENN
Posted on: April 7, 2021, 10:50h.
Final up to date on: April 7, 2021, 03:20h.
Barstool Sports activities founder Dave Portnoy claims Penn Nationwide Gaming (PNG) shares are down dueto a lately leaked intercourse tape of his.
PNG acquired a 36 % possession stake in Portnoy’s Barstool media and sports activities betting empire in January of 2020 for $163 million. That valued Barstool at $450 million. The Pennsylvania-headquartered regional on line casino operator has agreed to finally enhance its Barstool place to 50 % with one other $62 million funding.
Portnoy’s compensation within the deal got here in money and inventory. In line with his personal Twitter bio, he’s closely invested in PNG. “I personal a ton of Penn inventory,” he explains.
The leaked intercourse tape involving himself is the third Portnoy claims can now be discovered on the web. The outspoken businessman contends that the lewd footage is the reason for Penn’s latest slide (NASDAQ: PENN). Penn shares have dropped from $136 on March 15, to shut at $104 yesterday — a 23.5 % drop.
Penn’s inventory is f***ing down as a result of there’s a intercourse tape of me?” Portnoy requested in an expletive-filled Twitter video. “So, I’ve intercourse. Individuals f***ing know that.”
“Any person committing against the law by leaking an outdated video of intercourse between two consenting adults looks like a dumb motive for a inventory to go down,” Portnoy advised Fox Enterprise yesterday. “So far as I do know, no one would exist on Earth with out intercourse. It was by no means meant for public consumption.”
Portnoy nonetheless feels Penn’s inventory dip presents traders with a sound shopping for alternative. It’s price noting that his Twitter bio moreover contains the disclosure, “I’m not a monetary advisor. Don’t belief something I say about shares.”
Tape Unlikely Impacting Shares
Monetary specialists say a intercourse tape involving a key determine in a Penn Nationwide subsidiary is the unlikely wrongdoer for the mum or dad group seeing its worth lower by almost 1 / 4.
“There’s no confirmed connection between Portnoy’s intercourse tape and Penn’s inventory sinking,” stated FOX Enterprise’ Angelica Stabile.
Todd Shriber, On line casino.org’s monetary reporter, whose profession started with Bloomberg Information, agrees. Shriber believes Penn shares have tumbled because of the latest discussions concerning cell sports activities betting in New York.
Final evening, New York Gov. Andrew Cuomo (D) and state lawmakers lastly got here to phrases on methods to authorize cell sports activities betting within the state. At present, sports activities betting is restricted to in-person betting at upstate industrial and tribal casinos.
Penn shares had been up almost one % at present in early afternoon buying and selling.
Sports activities Betting Enthusiasm
Penn Nationwide wasn’t the one publicly traded firm invested within the sports activities betting area to see shares lately pull again. FanDuel mum or dad Flutter Leisure and DraftKings each skilled inventory retreats on the finish of final month.
However analysts overwhelmingly stay bullish on the corporations. Financial institution of America reported this week that the NCAA males’s March Insanity basketball event, which concluded Monday evening, served as a catalyst for thousands and thousands of Individuals downloading and signing up for sports activities betting platforms.
BoA says FanDuel and DraftKings mixed for 64 % of the brand new account downloads. BetMGM positioned third with 12 %, and Barstool Sports activities third within the “excessive single-digits.”
Shriber famous that Barstool’s efficiency was “spectacular,” contemplating the platform is stay in solely three states.