Image Source: (ABC)
Fanatics Inc. has moved into the trading card space over the past year and a few major moves have set Fanatics up to dominate the space.
The first domino to fall that led to this outcome for Fanatics started with Topps, the longtime leader in trading cards. As recently as August Topps has a planned merger with the deal valuing Topps at $1 billion. This merger ultimately fell apart due to Fanatics securing exclusive rights with Major League Baseball and their players' union. This move left Topps without its most storied partner. Fanatics would continue to move in securing licensing and gaining licenses to the National Football League and the National Basketball Association.
Fanatics acquiring rights for these leagues cast uncertainty in the trading card industry with Topps being the leader for nearly 70 years and Fanatics disrupting Topps's plan to go public.
With the plan to go public falling through for Topps it set the stage for Fanatics to acquire their biggest competitor in the trading card space. With that being said, Fanatics is set to acquire Topps for $500 million. The acquisition will allow Fanatics Trading Cards to use Topps's previous licensing deals and start immediately manufacturing and selling trading cards for MLB, NBA, NFL, and other leagues.
This deal is extraordinarily well-timed for Fanatics and will allow them to capitalize immediately and become the major player in trading cards as they are now coming back into popular culture.
Source: (The Wall Street Journal)