While hiring industry professionals and preparing for entering the sports wagering and gaming field, Fanatics completed its most recent capital raise. In the latest funding round, the company raised $325 million and sent its value to $18 billion.
Fanatics Plans Expanding to Gaming and Sports Wagering
Fanatics is a company founded in 1995 in Jacksonville, Florida, US. Since then, the American company grew to be the largest online retailer of licensed merchandise and sportswear. The company’s shop offers sports merchandise, as well as fan clothing such as hats, t-shirts, football jerseys, and more apparel from over 300 leagues. Those include the highly popular NBA, NFL, MLB, NCAA, NHL, and many more.
Besides e-commerce operations, Fanatics is planning on expanding to the sports wagering, gaming, and media fields. That move does not come unexpected, considering that the online retailer has a huge fan base which may boost its new endeavor. Moreover, recently, the company hired multiple industry professionals, probably preparing for the expansion.
Former FanDuel chief executive Matt King recently joined Fanatics and will likely spearhead the company’s gaming and sports wagering operations. Tucker Kai, former president of the LA Dodgers has also joined the company. Moreover, Glenn Schiffman former LAC CFO joined Fanatics last month.
The Latest Capital Raise Boosts the Company’s Value
So far, Fanatics has completed three capital raise rounds since last year. Back in August 2020, the company boosted its value hitting $6.2 billion in the first capital raise round. After that, in March this year, the company revealed that $320 million were invested, which resulted in a $12.8 billion valuation.
Recently, Fanatics has completed a $325 million fundraising round sending the company’s value to $18 billion, CNBC reported. The new funding will be used for expanding Fanatics’ “parent umbrella” to new sectors. The latest fundraise includes Major League Baseball, SoftBank, and Silver Lake. Furthermore, the hip-hop superstar Jay-Z has also joined the fundraise via Roc Nation, his full-service entertainment company.
Undoubtedly, Fanatics’ plans to enter the gaming and sports wagering field is a strategic move. With that in mind, a report released in May by the leading US betting comparison site, Bonus Seeker reveals that mobile sports betting holds incredible potential. So far, the activity is live and legal within 22 US states as well as D.C. and while, the sports betting market continues growing, more states legalize the activity but are yet to launch it. Projections reveal that once all US states legalize sports wagering, the activity may be worth some $22 billion annually. This is possibly only one of the many reasons why Fanatics decided to expand to sports wagering and gaming.