Score Media and Gaming Inc. (NASDAQ: SCR) stock gained by 56.13% in the current market trading session. Penn National continues to grow into an incredibly creative omnichannel supplier of retail and online gaming, live racing, and sports gambling fun with the state’s leading and most varied regional gaming footprint, which includes 43 locations across 20 states.
What’s happening in SCR stock?
Penn National Gaming reported today that it has reached a formal deal to buy theScore which is a prominent digital media, sports betting, and technology company, for around US$2.0 billion in cash and shares.
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TheScore shareholders will get US$17.00 in cash and 0.2398 shares of Penn National common stock for each theScore share under the terms of the deal. It implies a total purchase consideration of US$34.00 per theScore share focused on Penn National’s 5-day volume cumulative total trading price as of July 30, 2021.
The deal has been fully authorized by the boards of directors of both businesses and is presently scheduled to conclude in the first quarter of 2022. Following the conclusion of the contract, current Penn National and theScore shareholders will control roughly 93 percent and 7 percent respectively, of the Company’s outstanding shares. Penn National plans to use existing cash on its balance sheet to cover the approximately US$1 billion cash part of the transaction.
Jay Snowden, President and Chief Executive Officer of Penn National, commented,
SCR is now in a privileged situation to provide their consumers with the most robust ecosystem of sports, gaming, and media in North America, resulting in the creation of a community that doesn’t exist yet. Users will get access to a one-of-a-kind mobile sports betting and iCasino platform that includes highly tailored bets and increased in-game wagering options. In addition to this, it provides hugely entertaining, personalized sports and entertainment content and real-time scores and data. This new flywheel, they think, will lead to the finest engagement and retention.
Significantly, the transaction gives them a road to complete ownership over their technology stack. theScore has created a cutting-edge player account management system and is nearing completion on an in-house managed risk and trading platform. They’ll get exposure to theScore’s vast pool of product and technical expertise, as well as data-driven user insights, which will help them advance their customer acquisition, engagement, retention, and cash flow initiatives.