Fanatics IPO could finally happen in 2024
Fanatics could launch an IPO in 2024, ending two years of speculation about one of the most anticipated IPOs.
After two investor days (including the one in June), there is speculation that Florida-based Fanatics will finally sell shares to public investors. But that didn't happen, dampening hopes for big-name company activity in a slow year for IPOs. In the first three quarters of 2023, US IPOs brought only US$16.7 billion in revenue to listed companies.
Fanatics is expected to hit the public markets after making a number of acquisitions in recent years, including Topps trading cards and apparel brand Mitchell & Ness. “Fanatics is known for its exclusive licensing agreements with the NFL, NHL, NBA, MLB, and colleges and universities to manufacture and sell official team merchandise,” according to Seeking Alpha.
Following a $700 million funding round in December 2022, Fanatics was valued at $31 billion. If the company raises close to that amount or more, it could become one of the largest initial public offerings next year.
There are signs that Fanatics is preparing to go public
In addition to the aforementioned investor day, there are other signs that new entrant to the US iGaming and sports betting competition, Fanatics, is gearing up for an IPO.
In April, the company named Deborah Crawford senior vice president and head of investor relations. Crawford spent a decade in a similar role at Facebook parent company Meta Platforms and previously led investor relations at Ancestry.com and Netflix. It's a compelling investor relations effort for a company that wants to stay private, and it suggests Fanatics could actually have a credible IPO in 2024.
In September, Fanatics announced the hiring of Andrew Low Ah Kee as CEO of Fanatics Commerce, the company's sales arm. It's another aspect that rental market watchers believe could be a precursor to an IPO.
In mid-2022, Fanatics hired Matt King as CEO of its betting and gaming division. He previously held the same role at FanDuel, the largest online sports betting operator in the United States.
Speaking of fanatics and betting...
Fanatics is expected to expand more broadly into U.S. sports betting in 2024 after acquiring PointsBet's U.S. operations for $150 million.
In September, the company launched the Fanatics Sportsbook app in Maryland, Massachusetts, Ohio and Tennessee. Fanatics previously announced a partial acquisition of PointsBet U.S. Fanatics launched the app in late August in seven additional states, including Colorado, Iowa, Kansas, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia.
"Notably, Fanatics' betting app saw a spike in search interest in November. At a Fanatics investor event earlier this year, the NBA Players Association and Las Vegas Raiders minority owner Tom Brady Representatives for Tom Brady expressed support,"Seeking Alpha added.
Fanatics' investors include the four major U.S. sports leagues: Major League Baseball (MLB), NBA, NFL and NHL, as well as Major League Soccer (MLS). Other investors include Silver Lake, SoftBank, BlackRock, Fidelity and MSD Partners, the investment vehicle controlled by Dell founder Michael Dell.
Read also:
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
- Liechtenstein: New ban bans online gambling until at least 2028
- Sportsbooks increase ad spend during football season
Source: www.casino.org
