Quavo performs onstage at Michael Rubin’s Fanatics Super Bowl Party at Loews Miami Beach Hotel on February 01, 2020 in Miami Beach, Florida.
Kevin Mazur | Getty Images
Michael Rubin’s e-commerce powerhouse Fanatics has increased its value to $6.2 billion — up from $4.5 billion – after raising a $350 million Series E funding round, according to a person familiar with the company’s transactions.
The individual spoke to CNBC on the condition of anonymity as the company hasn’t yet made an announcement. The Fanatics declined to comment when asked about the company’s funding and new valuation, but Rubin will appear on CNBC’s “Squawk Box” on Friday to discuss the deal.
The Wall Street Journal first reported Fanatics’ latest funding round, which the person said was only targeted to be $250 million. But with Fanatics e-commerce operations up 30% this year — which the company did confirm — despite no major sports for nearly five months, investors “oversubscribed” for the company’s Series E funding, the person told CNBC.
Both the National Football League and Major League Baseball benefited from the company’s increased valuation as well. Both leagues collectively invested $150 million in Fanatics in 2017, and this new funding round results in a $100 million equity increase in their holdings in Fanatics.
The company, which grossed $2.5 billion in 2019, plans to use the new funding to accelerate its v-commerce strategy, through additional rights acquisition and mergers and acquisitions. The funding round is the last financing as a private company, and it is believed Fanatics’ next announcement will be an IPO although no timetable has been decided.