Fanatics ( FANA ) has reportedly raised $700M in a new funding round to push its valuation to $31B. That is a quick jump from the $27B valuation for the sports merchandise platform just last March when Michael Dell and Blackrock ( BLK ) participated. It was only about 20 month ago that Fanatics ( FANA ) was valued at $12.8B in a funding round that included Major League Baseball, Silver Lake, Fidelity Investments and other investors. Going back even further, the NFL and Softbank ( OTCPK:SFTBY ) are early investors.
Sources indicated that the latest funding round included Clearlake Capital, LionTree, Silver Lake, Fidelity, and Softbank. Fanatics is expected to set aside the new capital for strategic M&A with a goal to help Fanatics grow across its divisions. Fanatics is now organized into Fanatics Commerce (core merchandise business), Fanatics Collectibles (Topps and NFTs) and Fanatics Betting & Gaming (sports gambling and iGaming).
Fanatics is on the list of companies that could see a high level of interest with an IPO in 2023 if market conditions improve. There has also been speculation in the past that Rush Street Interactive ( RSI ) or another casino sector player could make a bid for the company.
Of note, Google search interest in Fanatics is at an all-time high.
The expected launch in 2023 of a sports betting operation at Fanatics will be of high interest to DraftKings ( DKNG ), FanDuel ( OTCPK:PDYPY ) and MGM Resorts ( MGM ), Caesars Interactive ( CZR ).
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Red-hot Fanatics could jolt the slow IPO market in 2023