Penn Gaming's Barstool Drop
Share
Sam Parr discusses how Penn Gaming's stock dropped significantly despite Barstool Sports being a small portion of their business.
"Penn's market cap is 9 billion, and Barstool was bought for 600 million. Barstool only makes up about 8% of Penn's business in terms of revenue and value. However, Barstool makes up a significant amount of the brand equity of Penn. Very few people knew about Penn - it was a regional casino on the east coast. Now it's a global name because of Barstool and Dave.
While Barstool only makes up 5-10% of the actual business metrics, it accounts for 60-90% of the brand equity. The stock went down 30% when this got announced. I wouldn't want to own this stock necessarily because I think more of these things are gonna happen. However, Penn might actually be an interesting buy right now. If Barstool only makes up 8% of their business, and the business is doing pretty good, the Barstool ad business would have to go away almost entirely for this to make up a meaningful impact. Yet the stock went down 30% - this might be a good stock buy right now."
Sam Parr
Host of MFM and fitness influencer
Sam Parr is a serial entrepreneur and business media pioneer.
In 2016, he founded The Hustle, a business news media company that started in his kitchen with just $12 and grew to eight figures in revenue.
Sam led the charge in making newsletters popular when few believed in their potential.
After four successful years, he sold The Hustle to HubSpot, a publicly traded company. Now operating as HubSpot Media, The Hustle reaches 3 million readers daily, employs a team of nearly 100, and has been the launchpad for dozens of its staff to found their own media companies and newsletters.
Sam remains the host of the popular business podcast, My First Million, and continues to start and sell companies. He also co-founded Hampton, a highly vetted community for entrepreneurs, founders, and CEOs, and teaches people to write better through his platform, Copy That.