Sports merchandise company Fanatics has secured $325 million in its latest investment round.
The investment round saw participation from hip-hop star Jay-Z and his entertainment company Roc Nation, as well as its current backers SoftBank and Silver Lake. It marks the third time the Florida-based company has raised capital within the past year, tripling its valuation from $6.2 billion a year ago.
Over the course of the pandemic, the company has seen record growth, with revenue expected to surpass $3 billion in 2021.
The company, now worth $18 billion, plans to use the funding for forming a new division that will focus on developing new revenue streams, leveraging its 80 million-strong merchandising customer base. Fanatics Chairman Michael Rubin will serve as the chief executive of the new division.
Fanatics has been making moves to expand into the sports gambling business. The company recently hired former IAC chief financial officer Glenn Schiffman to explore new revenue models in the gaming and ticketing sector. It has also hired former Los Angeles Dodgers President Tucker Kain as its new chief strategy and growth officer and FanDuel’s former CEO Matt King to help lead its new sports gambling and gaming division, CNBC reported.