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Fanatics is in talks to acquire German sports betting company Tipico, according to CNBC.
Fanatics is looking to tap into the sports betting market after CEO Michael Rubin sold his 10% stake in Harris Blitzer Sports & Entertainment — owners of the Philadelphia 76ers and New Jersey Devils. Earlier this month, HBSE was valued at $3 billion.
Rubin’s decision allows Fanatics to enter the sports betting market after being prohibited by an NBA rule that barred team owners from operating gambling platforms.
Fanatics, which is projected to generate more than $5 billion in revenue in 2022, has steadily expanded its portfolio outside of its bread-and-butter sportswear merchandising and retail.
- It bought trading card giant Topps in a deal valued at $500 million in January.
- The company was part of a consortium that purchased Mitchell & Ness for $250 million.
The potential purchase of Tipico would immediately establish a footprint for the company in the U.S. betting market. Tipico currently holds betting licenses in Colorado and New Jersey.
Money to Spend
Fanatics will have no problem footing the bill for Tipico following the company’s latest funding round. Earlier this year, Fanatics raised $1.5 billion, valuing the business at $27 billion.
The round — led by the NFL’s $320 million investment — included Brooklyn Nets owner Joseph Tsai’s Blue Pool Capital, Paris Saint-Germain owner Qatar Investment Authority, and others.
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