Topps to go public through SPAC deal
kobefan1
Posts: 494 ✭✭✭
From CNBC Topps, which is best known for its trading cards, will go public through a merger with a special purpose acquisition company.
Former Disney CEO Michael Eisner will stay on as Topps' chairman.
The deal values Topps at $1.3 billion. Topps' net sales rose 23% in 2020 to $567 million, a record high for the company. While Topps is best known for its sports trading cards, it has branched out into interactive mobile apps to connect collectors and recently expanded into nonfungible tokens. Ownership of an NFT is recorded on a blockchain, similar to the networks that underpin cryptocurrencies. Each NFT is unique and can't be duplicated, just like owning an original painting or a rare baseball card.
"This is the icing on the cake, going digital completely, with the analog still in place," Eisner said.
Comments
Very interesting deal. MUDS is the spac ticker. It’s worth a flyer with how hot the industry is.
I brought $1k in shares to see what happens.
How long ago did Topps go private? I seem to remember it being publicly traded in the past.
They were taken private in 2007 I think. I watched the interview with Eisner today. I’m shocked they are only forecasting 20% growth this year. It’s impossible to buy products at retail prices. They could double their prices I think. He also talked about NFT and tapping into that market.
brought it where?
I'm with fidelity right now I brought the spac symbol MUDS when they merge with topps this yr 2nd half or 3rd then MUDS will trade as $TOPP
I think that Topps will have to tread carefully to avoid repeating the mistakes of the late 1980s and early 1990s. With the massive demand for product right now, it would be easy to appease shareholders by doubling production, which would inevitably sell out immediately until people realized what was going on.
kevin
Is this accurate? I don't doubt your assessment but would like to see a source confirming that it will convert 1:1 to TOPP once the merger is complete.
https://investorplace.com/2021/04/muds-stock-mudrick-shares-trade-higher-on-topps-spac-merger-nft-optimism/
Buying space you need to be aware of a few things. You will need to elect if you want to convert shares or take cash value. Cash value is 10.15. So your downside is limited. You could also buy MUDSU which includes a half a warrant to buy at 11.50 .. could also buy the warrants individually. Warrants are risky and can go to zero.
Thank you
In for 1K.............let's GO!!!!!
If I buy, how do I make this election?
Just bought some MUDS. I assume something will be sent to me to make the election to convert to Topps from my Fidelity account.
Should get a notification through fidelity. 99% of the actions are not important and I usually ignore. This one you have to pay attention to. I think it will default to cash. Don’t Expect to see anything for a few months
💯
Here is the investor pitch. Topps only forecasting 20% EBITA growth seems crazy to me. I mean obviously they know their business better than me but I can’t buy Topps at retail ever. Walmart, Target etc... all sold out the second they stock the shelves. I’m sure this will end like the 90s and everything becomes over produced and the bubble bursts.... but I have to guess near term growth is more than 20%.
https://www.sec.gov/Archives/edgar/data/0001820727/000110465921046855/tm2112182d1_ex99-2.htm
It's been 24 hours..........why hasn't my money doubled yet????
The NFT/blockchain part is the interesting part and could be the golden goose with this investment. There could be scenarios where future cards are block chained and Topps could get royalties on block chained cards each time a card is sold. I’m in no way an expert in NFTs/blockchaining but these scenarios are the ones I think you would want to have an understanding of before making this investment. Of course the 20% growth is nice in the short term too.
You have to think Topps and Panini see how much money is being spent on their products on the secondary market and are thinking of ways to get a piece of that action in addition to the initial selling of boxes of cards and packs of cards. They know the past from the late 80s and early 90s and surely realize that to keep the card market hot they need to keep production to a minimum to make their product remain collectible. Hard to have continued growth if you are limited to the amount of product you can produce. Now if they can get paid for the initial sell on future products and get a small royalty percentage from subsequent sells then there is a huge new revenue stream and the chance for a tremendous amount of growth. Once again I’m no NFT/blockchain expert and don’t claim to understand fully the logistics of NFT and blockchain royalties but definitely what I am investigating more as I look into this.
I agree their evaluation. If they produce too much and numbers get out an implosion will occur. Of course there are those that believe get what you can today and tomorrow be damned. Eisner's folks are not that short sighted - you listening PSA?
It's difficult business in that ramping up Production is not the key to sustained revenue.
It's the singer not the song - Peter Townshend (1972)
Could Topps start printing cards of say 1980 Henderson, 1969 Mantle, 2011 Trout etc. since they have the paper and own the rights to their own cards? Legal or not?
Up 23% since I bought in........word