Fanatics Scores $12.8 Billion Valuation With $320 Million Funding Round

The mammoth sports merchandise company Fanatics has doubled in valuation in the last eight months, thanks in part to $320 million in new funding. As CNBC reported on Wednesday (March 24), Fanatics’ valuation rose from $6.2 billion in August 2020 to $12.8 billion. The new funding will allow Fanatics to “expend its vertical commerce division, explore additional mergers and acquisitions and expand internationally,” noted CNBC, citing “a person familiar with the company’s planning.”

Investors in this round of funding include the private-equity firm Silver Lake, Fidelity Investments, Franklin Templeton, Neuberger Berman and Thrive Capital, as well as Major League Baseball — which, along with the NFL, had invested $150 million in 2017 and another $100 million last year.

“Fanatics backers are attracted to its growth and ability to reach 80 million sports consumers,” the report noted. “The firm will use the data collected from customers to leverage other business ventures. Sales for Fanatics global eCommerce operations is up 30 percent year over year, and it expects to eclipse $3 billion in sales this year.”

Fanatics raised $350 million last year, using those funds to acquire some of its rivals, including WinCraft, a Minnesota-based maker of sports-themed merchandise for the home, car or office, CNBC said.

There is some speculation that Fanatics may seek an IPO, bu its executive chairman told CNBC that the company is focused on growth for now.

This news comes in the wake of a shaky year for sports, with the COVID-19 pandemic keeping fans out of the stands for much of 2020, leaving online sports and betting platforms to pick up the slack. Teams such as the New York Giants and Minnesota Vikings signed agreements with services such as DraftKings and GameOn Technology, offering fans a place to bet on and chat about their favorite teams, respectively.