You are here

SoftBank to Invest $1 Billion in Fanatics

SoftBank to Invest $1 Billion in Fanatics
Share:

Online and e-commerce sports merchandise retailer, Fanatics, is the most recent company to receive an investment from SoftBank, a source close to the matter told CNBC.

SoftBank and Fanatics are close to sealing up a $1 billion deal, raising Fanatics’ valuation to $4.5 billion. A part of the sizable bet that the startup’s licensing agreements with the NFL and others, allow it to contend with e-commerce giant Amazon, according to people familiar with the matter.

The investment in the e-commerce company is scheduled to close this month as part of a round of funding. The NFL brought in $95 million and Major League Baseball added $50 million earlier this year, according to the Wall Street Journal.

Fanatics sells licensed sports apparel and merchandise on its website, and also organizes web sales for many sports leagues. Doug Mack, who became CEO of Fanatics in 2014, emphasized data as the “heartbeat” of the company.

Japan’s SoftBank declared its goal to invest in the “information revolution,” especially corporations that need significant growth funding. In April, SoftBank made an initial investment of an undisclosed sum, according to a person familiar with the matter, but the bulk of the $1 billion investment came from SoftBank’s $100 billion Vision Fund. The fund, whose investors include Saudi Arabia and Abu Dhabi sovereign-wealth funds as well as Apple and Qualcomm, is still being completed after gathering $93 billion in an initial closing in May. SoftBank’s latest push of investments, many of which fall into the so-called Vision Fund, include chip company Nvidia and cancer treatment start-up Guardant Health.

Online commerce is a highly competitive field as Amazon covers most of the market. Chinese e-commerce platform, Alibaba, which also counts SoftBank as a major investor and strategic partner and considers Amazon an arch-rival, has also invested in Fanatics.

Fanatics made no comment on the deal nor were officials immediately available for comment.


Share:
Kashish Ambekar
Kashish Ambekar
Kashish moved to the United Arab Emirates from London after he graduated from UEL with a Masters of Business Administration specializing in Finance. Money smelled good, although tipping in rubies was a fortune in Dubai, which he couldn’t afford, let alone implement. India happened naturally by birth and the ever developing market proved no bounds in almost every Industry. The art of writing came naturally to him, short stories to professional articles in lieu of being therapeutic once, to a full time content writer. Currently he freelances as a content writer and is extremely devoted as his thoughts have found a way to be penned for technology in support to TechFunnel.com.

Similar Articles

Leave a Reply

Additional Resources to Download

Top