Fanatics’ $31 Billion Valuation Ranks it Among Most Valuable Unicorns

Fanatics’ $31 Billion Valuation Ranks it Among Most Valuable Unicorns

Fanatics, a sportswear and betting firm, is one of the world's most valuable unicorns, but it still has a ways to go before it ranks in the top 10.

According to a recent Visual Capitalist research, Fanatics is ranked 18th among global unicorns with a valuation of $31 billion as of July 4. In the world of finance, closely held businesses valued at $1 billion or more are referred to as "unicorns." When the $5 billion and $10 billion thresholds are surpassed, the atmosphere becomes even more rarefied.

US-based businesses account for nearly half of the most expensive unicorns in the world, including Fanatics. Although clothing and collectibles account for the majority of Michael Rubin's company's income, its Fanatics Betting & Gaming division is making progress in the iGaming and online sports betting sectors.

Although Fanatics' $31 billion valuation is amazing, Anthropic, ranked No. 10, is valued at $62 billion, thus Fanatics would need to double in value to make it into top-10 unicorn zone. According to Visual Capitalist, Elon Musk's SpaceX is at the top of the list with $350 billion. With a reported valuation of $500 billion, OpenAI, the second-most valuable unicorn, is the most valuable private firm in the world.

A Few Questions Regarding the Valuation of Fanatics

After a funding round in December 2022, Fanatics was valued at $31 billion. However, a year earlier, there were speculations that the firm was considering selling equity to employees at a valuation of $25 billion.

Reports of Fanatics equities trading in private markets at prices suggesting a $17 billion valuation have been highlighted by certain experts. A $25 billion valuation would be sufficient to retain Fanatics within the top 30 unicorns, but a $17 billion price tag would place it just outside the top 30. It's unclear if that's true or simply speculation. There are no additional betting-related businesses in the top 30.

Although Rubin stated in a recent interview that the company will eventually go public, it is evident that the once-rampant rumors about Fanatics starting an initial public offering (IPO) have subsided.

There Are Some Unicorns in the Gaming Industry

Although Fanatics isn't a pure-play gaming company, there are other unicorns in the sector. After a $70 million investment round in March, Underdog Fantasy was valued at $1.23 billion. According to some industry experts, this suggests that rival PrizePicks is valued at about $2 billion.

Only six betting companies—including DraftKings and FanDuel—have attained unicorn status, according to Tracxn data published earlier this year. Fanatics are probably not included in that number, and if prediction market operators are taken into account, it might be higher.

While rival Polymarket is reportedly on the verge of obtaining $200 million at a $1 billion multiple, Kalshi raised $185 million at a $2 billion valuation in June.