Penn National Gaming’s $2 Billion Acquisition of Score Media and Gaming

Wachtell, Lipton, Rosen & Katz and Blake, Cassels & Graydon advised Penn National, while Paul, Weiss, Rifkind, Wharton & Garrison and McCarthy Tétrault advised theScore. Osler, Hoskin & Harcourt represented the Levy Family in connection with this transaction.
Torys LLP acted for Canaccord Genuity as the financial advisor to Score Media and Gaming.

Penn National Gaming, Inc. (Nasdaq: PENN) and Score Media and Gaming,Inc.(TSX:SCR; Nasdaq:SCR (“theScore”) have entered into a definitive agreement whereby Penn National will acquire theScore, a leading digital media and sports betting and technology company, for approximately US$2.0 billion in cash and stock.

Under the terms of the agreement, theScore shareholders will receive US$17.00 in cash and 0.2398 shares of Penn National common stock for each theScore share, which implies a total purchase consideration of US$34.00 per theScore share based on Penn National’s 5-day volume weighted average trading price as of July 30, 2021. The transaction has been unanimously approved by the boards of directors of both companies and is currently expected to close in the first quarter of 2022. Upon completion of the transaction, current Penn National and theScore shareholders will hold approximately 93% and 7% respectively, of the Company’s outstanding shares. Penn National expects to fund the approximately US$1 billion cash portion of the consideration using existing cash on its balance sheet.

With the nation’s largest and most diversified regional gaming footprint, including 43 properties across 20 states, Penn National continues to evolve into a highly innovative omni-channel provider of retail and online gaming, live racing and sports betting entertainment. The Company’s properties feature approximately 50,000 gaming machines, 1,300 table games and 8,800 hotel rooms, and operate under various well-known brands, including Hollywood, Ameristar, and L’Auberge. 

theScore empowers millions of sports fans through its digital media and sports betting products. Its media app ‘theScore’ is one of the most popular in North America, delivering fans highly personalized live scores, news, stats, and betting information from their favorite teams, leagues, and players. The Company’s sports betting app ‘theScore Bet’ delivers an immersive and holistic mobile sports betting experience and is currently available to place wagers in New Jersey, Colorado, Indiana and Iowa. theScore also creates and distributes innovative digital content through its web, social and esports platforms.

Goldman, Sachs & Co. LLC and Code Advisors LLC acted as financial advisors to Penn National. Morgan Stanley & Co. LLC and Canaccord Genuity Group acted as financial advisors to theScore. Greenhill & Co. Canada, Ltd. acted as independent financial advisor to theScore’s board of directors.

Wachtell Lipton’s team was led by partners Daniel A. Neff (Picture) and Zachary S. Podolsky and inclued George N. Tepe, Associate, Grace Kim, Law Clerk (Corporate), Ilene Knable Gotts, Partner, Nelson O. Fitts, Partner, Katharine R. Haigh, Associate (Antitrust), Adam J. Shapiro, Partner, Amanda M. Cioffi, Associate (Executive Compensation and Benefits), Emily D. Johnson, Partner, Daniel J. Wertman, Associate (Finance), Joshua M. Holmes, Partner, Rachel B. Reisberg, Partner, and Alexandra M. Ferrara, Associate (Tax).

The Paul, Weiss team included corporate partner Adam Givertz and counsel Christian Kurtz; litigation partners Andrew Gordon, Catherine Nyarady, Andrew Finch, and Jeannie Rhee; tax partner Brian Krause; executive compensation partner Jean McLoughlin; intellectual property partner Charles Googe; and antitrust counsel Marta Kelly and Yuni Sobel.

The Osler, Hoskin & Harcour team consisted of Doug Bryce, Alex Gorka, Brian Gray, James Rooney (Corporate), Dov Begun, Taylor Cao (Taxation), Lynne Lacoursière and Kelly O’Ferrall (Executive Compensation).

The Torys’ team included John Emanoilidis and Daniel Masliyah.

McCarthy Tétrault LLP advised Score Media and Gaming Inc. with a team led by Robert Hansen and David Woollcombe that included Michael Shahinian, Matthew Sanders, Gianluca Mazzanti and Michael Alty (Corporate/M&A), Patrick McKay, Jeff Oldewening and Emily Leduc Gagne (Tax), Jason Gudofsky and Michael Caldecott (Competition), Miranda Lam and Xinya Wang (Litigation), Kate McNeill-Keller (Employment), Vincent Yip (Intellectual Property), Conrad Lee (Technology/Privacy), and Deron Waldock (Benefits).

Involved fees earner: Michael Alty – McCarthy Tétrault; Michael Caldecott – McCarthy Tétrault; Emily Leduc Gagne – McCarthy Tétrault; Jason Gudofsky – McCarthy Tétrault; Robert Hansen – McCarthy Tétrault; Miranda Lam – McCarthy Tétrault; Conrad Lee – McCarthy Tétrault; Gianluca Mazzanti – McCarthy Tétrault; Patrick McKay – McCarthy Tétrault; Kate McNeill-Keller – McCarthy Tétrault; Jeff Oldewening – McCarthy Tétrault; Matthew Sanders – McCarthy Tétrault; Michael Shahinian – McCarthy Tétrault; Deron Waldock – McCarthy Tétrault; Xinya Wang – McCarthy Tétrault; David Woollcombe – McCarthy Tétrault; Vincent Yip – McCarthy Tétrault; Dov Begun – Osler Hoskin & Harcourt; Douglas Bryce – Osler Hoskin & Harcourt; Taylor Cao – Osler Hoskin & Harcourt; Alex Gorka – Osler Hoskin & Harcourt; Brian Gray – Osler Hoskin & Harcourt; Lynne Lacoursière – Osler Hoskin & Harcourt; Kelly O’Ferrall – Osler Hoskin & Harcourt; James Rooney – Osler Hoskin & Harcourt; Andrew Finch – Paul Weiss Rifkind Wharton & Garrison; Adam Givertz – Paul Weiss Rifkind Wharton & Garrison; Charles Googe – Paul Weiss Rifkind Wharton & Garrison; Andrew Gordon – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; Brian Krause – Paul Weiss Rifkind Wharton & Garrison; Christian Kurtz – Paul Weiss Rifkind Wharton & Garrison; Jean McLoughlin – Paul Weiss Rifkind Wharton & Garrison; Catherine Nyarady – Paul Weiss Rifkind Wharton & Garrison; Jeannie Rhee – Paul Weiss Rifkind Wharton & Garrison; Yuni Sobel – Paul Weiss Rifkind Wharton & Garrison; John Emanoilidis – Torys LLP; Daniel Masliyah – Torys LLP; Amanda Cioffi – Wachtell, Lipton, Rosen & Katz; Alexandra Ferrara – Wachtell, Lipton, Rosen & Katz; Nelson Fitts – Wachtell, Lipton, Rosen & Katz; Katharine Haigh – Wachtell, Lipton, Rosen & Katz; Joshua Holmes – Wachtell, Lipton, Rosen & Katz; Emily Johnson – Wachtell, Lipton, Rosen & Katz; Ilene Knable Gotts – Wachtell, Lipton, Rosen & Katz; Daniel Neff – Wachtell, Lipton, Rosen & Katz; Zachary Podolsky – Wachtell, Lipton, Rosen & Katz; Rachel Reisberg – Wachtell, Lipton, Rosen & Katz; Adam Shapiro – Wachtell, Lipton, Rosen & Katz; George Tepe – Wachtell, Lipton, Rosen & Katz; Daniel Wertman – Wachtell, Lipton, Rosen & Katz;

Law Firms: McCarthy Tétrault; Osler Hoskin & Harcourt; Paul Weiss Rifkind Wharton & Garrison; Torys LLP; Wachtell, Lipton, Rosen & Katz;

Clients: Canaccord Genuity; Levy John; Penn National Gaming; Score Media and Gaming;