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Recently, Penn Entertainment made headlines as it announced plans to lay off approximately 100 employees in order to prioritize growth for ESPN Bet. This decision comes as CEO Jay Snowden aims to enhance operational efficiencies following the company’s acquisition of theScore in 2021.
With a workforce of around 20,000 people, Penn Entertainment is focusing on a new phase of growth in its interactive business, particularly with ESPN Bet, a $2 billion branding partnership with Disney’s ESPN. Snowden shared in an internal memo that the company is embarking on product enhancements and deeper integration into ESPN’s ecosystem.
Investors are eagerly waiting for Penn to showcase its strength with the rebranded sportsbook, especially with the upcoming release of new ESPN Bet features during football season. Analysts believe that these developments will significantly improve the company’s product and demonstrate its commitment to delivering results from its investments.
Despite a 25% decline in Penn’s shares year-to-date and missed earnings expectations in the last two quarters, Truist gaming analyst Barry Jonas maintains a buy rating on the company with a price target of $25. While rumors of potential interest from other gaming and casino companies swirl, a sale is seen as unlikely in the near term due to the complexity of such a transaction.
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