Penn Entertainment sells Barstool Sports back to founder Dave Portnoy

David Portnoy, the outspoken laminitis of Barstool Sports, is erstwhile again the proprietor of his media brand, aft buying it backmost from Penn Entertainment.

The worth of the deal, which was announced connected Tuesday, was not instantly known. Barstool Sports was valued astatine $606 million successful February, erstwhile Penn bought the remainder of the institution it didn't already own. Penn became a number proprietor successful 2020.

Portnoy, who founded Barstool Sports in 2003, said successful a station connected Tuesday that Penn and Barstool had "gone our abstracted ways." Penn said the divestiture was completed successful speech for "non-compete and different restrictive covenants."

Penn sold Barstool astatine the aforesaid clip that it announced an online sports-betting deal with Disney-owned ESPN. That disclosure sent Penn shares up much than 15% successful after-hours trading.

Penn volition person the close to 50% of the gross proceeds successful the lawsuit that Portnoy sells oregon monetizes Barstool, the merchandise said.

— CNBC's Lilian Rizzo contributed to this report.