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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).
Image and article originally from seekingalpha.com. Read the original article here.