eBay is acquiring trading card marketplace TCGplayer for up to $295M
TCGplayer, an online marketplace for collectible trading card games, will be acquired by EBay in a transaction for up to $295 million, the business said on Monday. The transaction is scheduled to occur in the first quarter of 2023 and is subject to customary closing conditions. Trading cards are now seeing “significant growth,” according to EBay, who also stated that the acquisition strengthens its commitment to the hobby.
TCGplayer, which was founded in 2008, evolved from Syracuse-based hobby shops into an e-commerce site. TCGplayer, which presently employs more than 600 employees, will continue to operate freely following the acquisition.
In a news statement, Dawn Block, vice president of collectibles at eBay, said, “eBay continues to build on our 26 years of expertise in trading cards, enabling small hobby stores and Main Street businesses to create an online destination that collectors adore. With TCGplayer, eBay can improve the customer experience across categories, build even more connections, and cater to aficionados across the world. “eBay has always fueled our customers’ enthusiasm in this field and fostered interactions between buyers and sellers,” the company says.
Chedy Hampson, the founder and CEO of TCGplayer, said in a statement that the purchase will provide the business an opportunity to take use of eBay’s resources and industry expertise while TCGplayer continues to run autonomously. Hampson stated that he would continue to serve as the CEO of TCGplayer. He added that when the acquisition is completed, the firm would continue to have its headquarters in Syracuse.
At the press announcement, Hampson stated, “With eBay’s assistance, we will advance our objective and develop our tools and services to better the collecting experience both online and in your favourite neighbourhood hobby shop.
Trading card fans have long used eBay to purchase and trade cards, and the firm has recently been seeking to increase its market share. The business increased the capabilities for certifying expensive trading cards valued at least $750 as part of the expansion of its authentication service in January. Due to the level of activity in the category on its website at the time, eBay claimed it recognised the value in providing authentication functionality for trading cards. Trading cards saw $2 billion in transactions in the first half of 2021, according to the business, and is expanding “much faster” than its overall industry. For reference, that is equal to all of the trading card trades that occurred in 2020.
eBay has been attempting to strengthen its position as a site where people can look for collectibles as the business battles with rising competition from services like Facebook Marketplace and other local shopping applications. The business’s most recent acquisition demonstrates eBay’s heightened interest in trading cards since it gives it a method to “keep its position as a desired platform for trading card merchants,” according to the company.
The news that eBay is acquiring Manchester-based NFT marketplace KnownOrigin for an unknown price comes two months after that announcement. The platform enables creators, buyers, and sellers of NFTs to do so. eBay said that it is buying the whole business, including the intellectual property and the crew. In collaboration with web3 platform OneOf, eBay unveiled its first line of NFTs earlier this year.