Fanatics has announced that it has acquired the trading card company, Topps. The e-commerce company confirmed their deal of acquiring Topps in early January, wherein they paid around $500 million.
This merger comes as part of the attempt by Fanatics to expand into a next-generation trading company. The e-commerce company is looking to give “equitable partnerships” to sports organisations like the NBA, NFL, and MLB as well as player associations.
Why has Fanatics merged with Topps?
Fanatics has yet to announce the reasoning behind acquiring Topps, but Topps’ extensive history within trading cards it is expected that the business will continue on in some capacity under the name of Fanatics.
For Fanatics’ part, it is looking to create a more direct-to-customer business model within the industry of trading cards. It is looking to allow collectors to insure, grade, store, buy and sell their trading cards on a marketplace that is designed and run by Fanatics.
Why trading cards?
The main conclusion that spectators have come to is that Fanatics will now manufacture and distribute their own sports trading cards, and that they can get started immediately. The company, which was valued at $18 billion in 2021, is looking to take advantage of the booming trading card industry. It is projected to reach a whopping $98 billion by 2027.
