After a $700 million investment round, the value of Fanatics reaches $31 billion

Fanatics, a sports platform company owned by billionaire Michael Rubin, has raised $700 million in fresh financing, boosting its value to $31 billion.

The new funds will be used to focus on potential merger and acquisition opportunities across its collectibles, betting, and gaming businesses.

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Mr. Rubin declined to comment to TradeAlgo's calls.

In addition to LionTree, a new investor, Clearlake Capital, led the round. Silverlake, Fidelity, and Softbank are among the existing investors.

Previously, Fanatics was valued at $27 billion. A $1.5 billion round of financing was led by Fidelity, Blackrock, and Michael Dell's MSD Partners in March.

Over the past year, Fanatics has experienced rapid growth. Originally an e-commerce company selling sports gear, it has grown into a sports powerhouse with more than 94 million fans.

Also this year, the Florida-based company acquired Topps for $500 million, expanding into the collectibles business. It also purchased Mitchell and Ness in October, in partnership with LeBron James and Kevin Durant, who hope to revive the century-old brand with their tastemaker status.

Earlier this summer, Fanatics signed a long-term agreement with Nike to manufacture apparel for college sports fans. The Tokyo Giants, Japan's most popular baseball team, were also signed last month.

Rubin is now focusing on the sports gaming market. In 2023, Fanatics plans to launch sports betting, joining a crowded market. Despite this, Rubin is optimistic, predicting in October at the Sports Business Journal's World Congress of Sports Conference that sports betting and Fanatics' other business segments will generate $8 billion in profits by 2030.  

According to company estimates, Fanatics' revenue in 2023 will be approximately $8 billion, including its Lids segment. Any trading card rights that will come in the next few years are not included in that number.

Rubin recently met with more than 90 internet, retail, and gaming analysts from various Wall Street firms to discuss Fanatics' growth plans regarding an IPO .

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