Baseball card and NFT company Topps set to go public via SPAC in deal worth $1.3 billion

Baseball card and NFT company Topps set to go public via SPAC in deal worth $1.3 billion
Photo by Thomas Levinson/MLB via Getty Images

Topps, an 83 year-old baseball card company that also sells Bazooka gum and non-fungible-tokens, is going public via a SPAC merger with Mudrick Capital Acquisition Corp. II.

The deal values Topps at $1.3 billion and will raise up to $571 million in cash for the company. For Disney CEO and Chairman Michael Eisner will serve as Chairman of the company. Eisner acquired Topps in 2007 via his investment firm Tornante.

Topps saw a surge in business in 2020 as the collectible market soared due to the COVID-19 pandemic affording many consumers time to dig up their old playing cards and reminisce.
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The company saw its revenue grow 23% to $567 million last year as it expanded into offering digital non-fungible-token cards on the blockchain. This digital business already represents about 25% of the company's business.

"The strong emotional connection between the Topps brand and consumers of all ages is truly foundational, and, when combined with our growing portfolio of strategic licensing partnerships, creates a profitable business model with meaningful competitive advantages," Eisner said.

Topps is projecting top line revenue growth of at least 20% and adjusted EBITDA of more than $100 million in 2021, Eisner said in an interview with CNBC on Tuesday.
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In addition to its trading cards and NFT business, Topps also owns candy brands like Bazooka gum, Ring Pop, and Baby Bottle Pop.

Shares of Mudrick Acquisition Corp. II traded up 8% on Tuesday. Read more: Annabelle Huang has gained over 10,200% on her first ether purchase. The partner of the billion-dollar Amber Group shares how she pivoted from traditional financial services to crypto - and 2 emerging blockchain opportunities on her radar.
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