Fanatics purchased Topps Sports and Entertainment for $500 million and acquired the licensing rights for Major League Baseball cards, Major League Soccer, Formula One and UEFA.
Fanatics already purchased the baseball card licensing rights and was previously set to take over Topps’ contract with the MLB in 2025, according to a Forbes story published Tuesday. However, since Fanatics has acquired Topps, the company will start producing cards immediately.
Trading card giant Topps — just a few months after losing out on a deal to renew its longtime licensing deal with Major League Baseball to sports apparel startup Fanatics — is now selling its collectibles and cards business to … Fanatics. https://t.co/f4lSePs5eF
— CNN (@CNN) January 4, 2022
Fanatics Trading Cards was valued at $10.4 billion before the company ever produced a baseball card, Forbes reported.
The company raised roughly $325 million of the purchasing price from investors such as Jay-Z, the MLB and the venture capital firm Silver Lake, CNN Business reported. (RELATED: Doctor Leaves Behind $20 Million Baseball Card Collection After Death From COVID-19)
“With trading cards and collectibles being a significant pillar to our long-term plans to become the leading digital sports platform, we are excited to add a leading trading cards company to build out our business,” Fanatics CEO Michael Rubin said, reported CNN Business.
Topps, which is owned by Torante Company, will continue to operate as a candy and gift card business, according to CNN Business. The company will change its name to Bazooka Companies.
“Like any crown jewel, I and my partners at Madison Dearborn will miss our many years of ownership where we grew a highly profitable business through strategic licensing partnerships, global expansion and digital transformation,” Torante Company CEO Michael Eisner said. “We’re proud of what the Topps team has accomplished.”
MLB team owners locked players out Dec. 1 when the players association and owners failed to produce a new collective bargaining agreement. The lockout freezes all transactions throughout the offseason until a deal is reached.