HG Vora Capital Management, which owns about 4.8% of ESPN Bet operator Penn Entertainment Inc. (NASDAQ:PENN), has escalated its campaign for boardroom change by accusing CEO Jay Snowden of using the company’s private jet as a “personal Uber service.”
What Happened: The allegation, detailed in materials filed with the U.S. Securities and Exchange Commission, underscores broader concerns about Penn’s governance, capital allocation, and persistent underperformance relative to peers.
HG Vora’s investor presentation, published May 21, asserts that Penn’s board has failed to hold management accountable for a series of costly strategic missteps. The activist points to Penn’s $4 billion investment in online sports betting (OSB), which resulted in cumulative adjusted EBITDA losses exceeding $1 billion and write-downs of approximately $850 million.
Central to HG Vora’s critique is Penn’s failed investment in Barstool Sports, founded by media personality Dave Portnoy.
HG Vora, in its SEC filing, criticized Penn Entertainment’s board for what it described as “poor” strategic decisions and significant shareholder value destruction since 2021. The activist investor argues that Penn’s management has not been held accountable for failed transactions and “underperformance.”
Penn Entertainment Inc. did not immediately respond to Benzinga‘s request for comment.
Why It Matters: HG Vora has nominated three independent director candidates with deep industry experience, arguing that new oversight is needed to restore value and accountability. The firm urges shareholders to vote the GOLD proxy card to send a message that “genuine change is needed at PENN.”
Price Action: PENN stock closed at $15.08 on Friday, up 2.86% for the day. Year to date, the stock is down 21.62%. It has declined by 88.44% from its record high of $130.47, reached on March 12, 2021, according to data from Benzinga Pro.
PENN stock scores poorly on valuation, growth, and momentum metrics, according to Benzinga Edge Stock Rankings. It also shows a negative price trend across the short, medium, and long term. View the full stock breakdown here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
