Fanatics sells majority stake in NFT company Candy Digital

Fanatics sells majority stake in NFT company Candy Digital

The NFT market took another hit on the chin on Wednesday when Fanatics sold its majority stake in Candy Digital, an NFT company he co-founded in 2021, a source confirmed to Axios.

Why it matters: As the “crypto winter” grows colder for investors, the once-booming NFT sports space has plummeted.

  • “Over the past year, it has become clear that NFTs are unlikely to be sustainable or profitable as a standalone business,” Fanatics CEO Michael Rubin wrote in an internal email. according to CNBCwho first reported the news on Wednesday.

Details: Fanatics is selling its 60% stake to an investor group led by Galaxy Digital, a crypto merchant bank led by Mike Novogratz, Candy Digital’s other founding shareholder.

  • The terms of the sale were not known.

flashback: Candy Digital was founded in June 2021 in the midst of the NFT sports boom.

  • The company secured a major licensing deal with Major League Baseball for a series of NFTs and secured further deals with Netflix, WWE and several NASCAR teams.
  • In October of that year, it was valued at $1.5 billion after securing a $100 million investment that included SoftBank, Insight Partners and Peyton Manning, the legend of the NFL.

Of note: Fanatics are cool a $700 million funding round earmarked for acquisitions in its bid to become a full-fledged media business.

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