Report: Fanatics to Sell 60% of Candy Digital Stake Amid Struggling NFT Market – Bitcoin News

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Fanatics, the retailer specializing in licensed sports merchandise, is divesting 60% of its stake in the NFT company CandyDigital.

published on Jan. 4, 2023. CNBC obtained an internal email citing Fanatics CEO Michael Rubin.

“Divesting our ownership stake at this time allowed us to ensure investors were able to recoup most of their investment via cash or additional shares in Fanatics – a favorable outcome for investors, especially in an imploding NFT market that has seen precipitous drops in both transaction volumes and prices for standalone NFTs,” the email allegedly written by Rubin details.laying off

over a third of its staff at the end of Nov. 2022, according to multiple people familiar with the situation. The founder and executive chairman of Fanatics further detailed that the decision to sell its Candy shares was a “rather straightforward and easy decision for us to make for several reasons.” “Over the past year, it has become clear that NFTs are unlikely to be sustainable or profitable as a standalone business,” Rubin’s email explains. “Aside from physical collectibles driving 99% of the business, we believe digital products will have more value and utility when connected to physical collectibles to create the best experience for collectors.”

Fanatics operates several e-commerce sites, including nflshop.com and fanatics.com. In Jan. 2022, the firm acquired candy and collectibles company Topps for about $500 million. Like Candy, Topps also provides a number of NFT collections and its own marketplace for digital collectibles for brands such as Major League Baseball and

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Fanatic sells 60% stake in Candy Digital amid 'imploding NFT market'Amid the NFT downturn, sports giant Fanatics is selling its 60% stake in Candy Digital, a firm it jointly started in 2021. FOMC bullish
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