Top Trading Cards are arranged for a photo in Richmond, Virginia.
Jay Paul | Bloomberg | Getty Images
Topps, best known for its baseball tickets and the Bazooka candy series, has agreed to merge with Mudrick Capital Acquisition Corporation II, a special purpose-acquired company, valued at $ 1.3 billion.
Former Disney CEO Michael Eisner remains in charge of Topps’ chairman. Mudrick Capital and funds and accounts managed by GAMCO Investors and Wells Capital Management are expected to invest another $ 250 million in the SPAC.
The deal is expected to close in the late second or early third quarter. The combined company will be called Topps and will trade on the Nasdaq under the checkmark “TOPP”. The New York Times’ Dealbook was the first to report the deal.
Topps’ net sales rose 23% to $ 567 million in 2020, a record high for the company. While Topps is best known for its sports trading cards, it has branched out into interactive mobile applications to connect collectors and has recently expanded into non-flammable tokens, a new kind of digital asset. Ownership of an NFT is recorded on a blockchain, similar to the networks that support cryptocurrencies. Each NFT is unique and cannot be duplicated, just like owning an original painting or a rare baseball card.
Other companies, ranging from Taco Bell to Atari, have also jumped on the NFT bandwagon. Funko, which makes collectible vinyl figurines, recently bought an NFT startup to help navigate the new trend. But executives told Dealbook that the Topps deal was not due to its recent expansion into NFTs, although sports-related NFTs have risen sharply. At the end of February, Dapper Labs said consumers had already spent more than $ 230 million on the National Basketball Association’s buying and trading highlights.
Topps also has a gift certificate company under the name Topps Digital Services, where it works with companies such as Netflix, Airbnb and Nike. The candy segment features iconic brands such as Bazooka, Ring Pop and Baby Bottle Pop.
Call CNBC on 08:15 ET for an interview with Michael Eisner, former Disney CEO and current Topps chairman, and Jason Mudrick, founder and chief investment officer of Mudrick Capital Management.