Dec 6, 2022 - Economy

Fanatics raises $700M for M&A plans

Tim Baysinger

Fanatics logo is seen on the dugout wall before the game between the Pittsburgh Pirates and the Milwaukee Brewers at PNC Park on July 3, 2022 in Pittsburgh, Pennsylvania. Photo by Justin Berl/Getty Images

Sports merchandising giant Fanatics has raised $700 million in a new round of funding that now values the company at $31 billion, Axios has confirmed. The investment was first reported by the Wall Street Journal.

Why it matters: Fanatics will use the funds to invest in M&A at a time when dealmaking has cooled amid growing recession fears.

It's the second funding round for Fanatics this year, following a $1.5 billion raise in March.

Details: The funds will primarily be used to grow the company's other divisions, including a forthcoming sports betting and gaming operation, sources close to the deal tell Axios.

Fanatics attracted new investors in this latest round, most notably Clearlake Capital Group — which led the round — and investment bank LionTree.
Existing investors including Silver Lake, Fidelity and Softbank also participated.

The big picture: The company is trying to refashion itself into a full-fledged media business.

Go deeper: Fanatics scores $27 billion valuation

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Fanatics raises $700M for M&A plans

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