Sports merchandise company Fanatics secured a $325 million raise on Monday to start a new company within its parent umbrella. It’s now valued at $18 billion.
The Florida-based e-commerce firm will start a new company that will focus on revenue streams outside of merchandising. The division will be led by Fanatics chairman Michael Rubin, who will serve as chief executive officer. Fanatics claims it will make $3.4 billion in revenue this year, according to The Wall Street Journal.
Fanatics is seeking new opportunities like sports gambling and this move explains why it’s been hiring new executives. Last month, Fanatics hired former IAC chief financial officer Glenn Schiffman to play a critical role in expanding into new sectors like gaming and new ticketing models. The company oversees a blockchain tied to their NFT company, Candy Digital.
Former Los Angeles Dodgers president Tucker Kain joined the firm as chief strategy and growth officer. Matt King, Fan Duel’s former CEO, is expected to help lead a sports gambling and gaming division.
It’s still unclear the role Fanatics might play within the sports gambling sector. The company explored acquiring sports gambling provider PointsBet, but those discussions ended.
Investors in the raise include hip-hop mogul Jay Z and his entertainment company Roc Nation. SoftBank and Major League Baseball also have equity in Fanatics.
Fanatics enhanced its operations via acquisitions in 2020. The company also started operations in China to help increase its valuation from $6.2 billion in August 2020 to $12.8 billion last March.
