Japan-based SoftBank Group and its Vision Fund are closing a $1B investment in online retailer Fanatics, "part of a sizable bet" that Fanatics' licensing agreements with the NFL and other entities "give it the power to compete" with Amazon, according to sources cited by Mickle & Hoffman of the WALL STREET JOURNAL. The sources said that the investment in the e-commerce company is "scheduled to close this month as part of a round of funding that will lift its total valuation" to $4.5B from $3B. Other investors in this round include the NFL and MLB, which invested about $95M million and $50M, respectively, earlier this year. A source said that SoftBank in April "made an initial investment of an undisclosed sum," but the "bulk" of the $1B investment comes from SoftBank’s $100B Vision Fund. Fanatics' revenue last year topped $1.4B, up from about $1B in '15, and the company "expects to generate" $2.2B in revenue this year. About 75% of the company's revenue is "direct-to-consumer sales from Fanatics.com or the 200-plus team and league sites the company operates." Fanatics has "tried to differentiate itself from other e-commerce companies by adding manufacturing capabilities." The company in May acquired VF Corp.'s Majestic division, "giving it several manufacturing facilities" (WALL STREET JOURNAL, 8/9).
