By
Chimamanda U. Martha
April 25th, 2024
According to those familiar with the matter, Fanatics will use the proceeds from the round to expand its business activity and go beyond its existing business lines.
Fanatics Inc, an American online retailer of licensed sportswear, sports equipment, and merchandise, has closed its latest funding round where it hasraised as much as $1.5 billion. Following the round, Fanatics saw its valuation reach $27 billion. Notably, back in August 2021, its valuation was $18 billion after the company raised $325 million.
The key players in the capital raising round have included asset manager BlackRock Inc (NYSE: BLK), multinational financial services company Fidelity Investments Inc, and private investment firm MSD Capital. According to those familiar with the matter, Fanatics will use the proceeds from the round to expand its business activity and go beyond its existing business lines.
Fanatics is a sports merchandise retailer that takes a fast-fashion approach to sports merchandise and operates the e-commerce websites of major professional sports leagues and media brands, as well as over 150 collegiate and professional team properties. Founded back in 1995, Fanatics maximizes the presence and reach for more than 900 sports properties globally. Its database consists of more than 81 million global consumers, its more than 40 offices and facilities are allocated across the globe. Besides, Fanatics has partnerships with the leading American leagues, including MLS and NBA.
Latest Achievements of Fanatics amid Its Growing Valuation
Fanatics aims at furthering its innovation across the sports landscape and creating a next-gen digital sports platform. It also wants to compete with offerings including merchandise, NFTs, sports betting and gaming, trading cards, and much more. In order to be on top, the company is continuously announcing new initiatives.
Earlier this year, Fanatics announced the acquisition of Topps trading cards to accelerate the buildout of the Fanatics Trading Cards business. As a result of the deal, Fanatics was expecting to expand and strengthen its business as well as enhance Topps’ existing digital capabilities and grow the market opportunity for both parties. The sum of the acquisition totaled $500 million. Notably, the valuation of Fanatics trading card entity before the deal was $10 billion.
Last month, Fanatics made another significant purchase together with some celebrities. In particular, the company acquired 118-year-old Mitchell & Ness sportswear brand. The aim was to combine the expertise of Fanatics, the entertainers, and Mitchell & Ness for bigger and better sports apparel, accessories, and more. To complete the deal, Fanatics teamed up with rappers Jay-Z, Meek Mill, and Lil Baby, as well as Maverick Carter, a business partner of LeBron James. As for the distribution of the assets, Fanatics now retains 75% of Mitchell & Ness, the remaining 25% got in the hands of the celebrities mentioned.