New Fanatics Trading Card Business Valued at Over $10 Billion

(Bloomberg) -- Fanatics Inc.’s new trading card business, created through several surprise deals last month, received fresh funding that values the business at $10.4 billion, according to a person familiar with the matter.

The $350 million round for Fanatics Trading Cards was funded by entertainment company Endeavor, private equity firm Silver Lake and venture capital firm Insight Partners. The three investors represent about 3.4% of ownership, with Fanatics accounting for more than 80% of the business.

A spokesperson for Fanatics declined to comment on the investment.

Fanatics and its top executive Michael Rubin shook the trading card industry this summer by scoring long-term licensing deals with major sports leagues and players’ unions, pushing aside incumbent card-sellers Topps Co. and Panini SpA. The average length of the five deals across baseball, football and basketball is 15 years, according to a person familiar with the agreements.

Management plans to build a one-stop-shop for sports memorabilia and will add services including financing, grading and storage. The new entity will also bring on Josh Luber, co-founder of sneaker resale site StockX, as an executive, according to the person familiar with the matter.

The funding round was first reported by the Wall Street Journal.

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