The transaction also includes a so-called private investment in public equity (or PIPE) of $250 million.
Demand (and prices) for baseball cards and other collectibles has gone through the roof lately due to the 21st century twist on the business from the newfound popularity of NFTs.
Topps recently expanded its business to sell digital editions of its player cards, each with a unique NFT built on blockchain technology. That creates a scarcity value that makes them more desirable to collectors — and more valuable.
Topps is “well situated with a universally recognized brand to capitalize on the fast emerging market for collectible NFTs,” said Jason Mudrick, founder and chief investment officer of Mudrick Capital, in the release.
Eisner, who will remain chairman of Topps once the SPAC merger is completed, added in the release that there is “a strong emotional connection between the Topps brand and consumers of all ages.”
Topps has a “growing portfolio of strategic licensing partnerships” that will help make it profitable, he said. The company owns the storied Bazooka gum brand as well as the Ring Pop, Baby Bottle Pop and Juicy Drop candy and sour gel brands.
But given the current craze for collectibles, Topps’ core baseball card business is the main draw.
Wealthy investors are increasingly betting on sports trading cards in addition to more traditional assets like stocks, bonds and real estate.