Fanatics Refutes Rumors of CEO Michael Rubin Selling Equity
Fanatics has denied reports suggesting that Chairman and CEO Michael Rubin is considering selling up to $1 billion worth of his stake in the privately held company.
Fanatics IPO Speculations
The speculation, originating from an article by William Cohan in the Airmail Newsletter, claimed that Rubin might sell $250 million of his equity as part of a larger transaction. However, a Fanatics spokesperson clarified to the New York Post that these reports are inaccurate and that Rubin has no plans to sell his equity.
The rumors about Rubin’s potential equity sale come amid growing doubts about Fanatics’ initial public offering (IPO) plans for 2024.
Despite high anticipation, some Wall Street sources cited in the Airmail Newsletter suggested the company is facing challenges with earnings before interest, taxes, depreciation, and amortization (EBITDA) and revenue.
Fanatics, however, disputes these claims, projecting $8 billion in sales for 2024, up from $7 billion in the previous year.
Focus on Segments Expanding
Even if Rubin were to sell some equity, it wouldn’t necessarily impact Fanatics’ IPO prospects or operations negatively. Founders often sell shares to diversify their investments, and Fanatics has a substantial cash reserve of $1.7 billion.
Currently, the company is focused on expanding its segments, including sports betting and the Topps trading card division.
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