Fanatics Inc. raised $ 1.5 billion from a group of large investors, raising the sports merchandising giant’s estimate to $ 27 billion as it works to expand beyond its core business, according to people familiar with the matter.
Investors in the latest round include Fidelity Management & Research Co, a fund managed by BlackRock Inc.
and Michael Dell’s family office, known as MSD Capital LP, people said.
Fanatics’ latest estimate marked a major step since last August, when it raised $ 325 million, valued at $ 18 billion from investors, including SoftBank Group. Corp.’s
Vision Fund. This is likely to fuel speculation about the timing of a possible initial public offering for the company, which also sees private investment firm Silver Lake as a major supporter.
The company said it was probably an IPO, but remained focused on building the business and did not provide an update on the weather.
Fanatics, which is overseen by CEO Michael Rubin, is working to expand beyond its core business of providing goods and souvenirs to major league sports teams.
In the wake of its fundraising round in August, Fanatics announced exclusive trading card deals with unions representing Major League Baseball players, the National Basketball Association and the National Football League, turning their long-standing relationships with companies like Topps Co. trading card transactions with MLB and NBA.
Fanatics Trading Cards received $ 350 million in funding from three investors who valued the new venture at $ 10.4 billion, The Wall Street Journal reported in September.
In January, Fanatics said it was buying Topps. The purchase price was $ 500 million, the Journal reported.
This wave of deals that turned the trading card business upside down was just one in a series of new initiatives that have spread under the fanatics’ umbrella.
Last year, the company hired the former CEO of the online betting platform FanDuel Group in order to enter the fast-growing legal environment for sports betting. He later applied for a license in New York, but was rejected.
Fanatics have also started a business called Candy Digital, which sells irreplaceable tokens or NFT. The business, which deals with professional sports leagues, was valued at $ 1.5 billion in October when it raised money from outside investors.
The company also owns half of the hats retailer Lids Sports Group, which it acquired in 2019.
Write to Miriam Gottfried at [email protected] and Andrew Beaton at [email protected]
Corrections and amplifications
Fanatics is controlled by CEO Michael Rubin, but he does not have a majority stake. An earlier version of this article incorrectly stated that the company was majority owned by Mr. Rubin. (Corrected March 2)
Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
It appeared in the March 3, 2022 print edition as “Fanatics Attract Big Investors.”