Barstool Sports to Sell 36% Stake to Penn National Gaming (2)

Barstool Sports, the controversial sports and pop-culture blog, agreed to sell a 36% stake to casino operator Penn National Gaming Inc. for about $163 million, the latest sign of convergence in sports, media and gambling.

Penn National will increase its ownership to about 50% after three years with a further investment of about $62 million, the companies said Wednesday. Penn National will be Barstool Sports’ exclusive gaming partner for as long as 40 years. The cash and preferred stock deal values Barstool Sports at about $450 million.

Penn shares were up 12% to $29.31 in New York.

The purchase ...