Fanatics evaluating tender at discounted $25B valuation – Bloomberg
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Fanatics (FANA) is in talks to sell employees share of the sports merchandising company at a discounted valuation of $25 billion.
The company is discussing a tender offer of between $75 million and $100 million at a~19% discount to its funding raising round in December 2022, according to a Bloomberg report on Wednesday, which cited people familiar with the matter.
The move will give existing employees the ability to obtain some liquidity, a Fanatics spokesperson told Bloomberg. Fanatics is expected to generate $8 billion in revenue this year, a 15% increase from last year, the spokesperson said.
Fanatics was reportedly valued at $31 billion in a December 2022. The last fundraising round for Fanatics, which is led by Michael Rubin, included Clearlake Capital, LionTree, Silver Lake, Fidelity, and Softbank.
Besides sports merchandise and memorabilia, Fanatics entered the online sports betting market this year when it purchased the U.S. businesses of PointsBet (OTCQX:PBTHF). Fanatics now competes with DraftKings (DKNG) and Flutter’s (FLUT) FanDuel.