Fanatics to Sell 60% of Candy Digital Stake Amid Struggling NFT Market – Bitcoin News
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Fanatics, a retailer specializing in licensed sports merchandise, is reportedly selling 60 percent of its stake in non-fungible token (NFT) company Candy Digital. The company is selling its Candy Digital stake to an investor group associated with billionaire Mike Novogratz and his company Galaxy Digital.
According to the report, the sports trading giant fanatics are selling the majority of the Candy Digital Stake
Licensed sporting goods company Fanatics has decided to sell 60% of its stake in the non-fungible token (NFT) industry after 2022, according to a report from CNBC on January 4, 2023. referring to Fanatics CEO Michael Rubin.
“The sale of our stake at this time allowed us to ensure that investors were able to recoup the majority of their investment in cash or additional Fanatics holdings – a favorable outcome for investors, especially in the collapsing NFT market, which has seen a sharp decline in both transaction volumes and prices for individual NFTs “, an email allegedly written by Rubin says.
With news of Fanatics dropping its 60 percent stake in Candy, the NFT company is said to be laying off more than a third of its staff at the end of November 2022, according to multiple people familiar with the situation. The Fanatics founder and CEO further elaborated that the decision to sell its Candy shares was “a pretty straightforward and easy decision for a number of reasons.”
“Over the past year, it has become clear that NFTs is unlikely to be sustainable or profitable as a stand-alone business,” Rubin’s email explains. “In addition to the fact that physical collectibles (trading cards) drive 99 percent of business, we believe that digital products have more value and utility when combined with physical collectibles to create the best experience for collectors.”
Fanatics has several e-commerce sites, including nflshop.com and fanatics.com. In January 2022, the company bought candy and collectibles maker Topps for about $500 million. Like Candy, Topps also offers several NFT collections and its own marketplace for digital collectibles such as Major League Baseball (MLB) and Garbage Pail Kids.
What do you think of Fanatics selling 60% of the company’s Candy Digital shares? Let us know what you think about this topic in the comment section below.
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