Penn Entertainment Resolves Dispute With Activist Investor Through Board Agreement

Penn Entertainment has reached a settlement with activist investor HG Vora Capital Management, ending a lengthy dispute that has plagued the company for over two years. As part of the cooperation agreement announced Monday, Penn will add three new independent directors to its board. HG Vora, which owns approximately 4.8% stake in Penn, has also agreed to withdraw its lawsuit filed in Pennsylvania federal court last May. The dispute centered on Penns strategic decisions, particularly its expensive pivot into online sports betting. The companys $2 billion deal with Disney for the ESPN Bet trademark has been criticized as a major misstep, with the stock significantly underperforming as a result. HG Vora had pushed for board changes, arguing that Penns leadership was not acting in the best interests of shareholders. The settlement comes just days before Penns earnings call scheduled for February 26th.