Topps’ 2016 season baseball cards will be on display during the Open Topps Baseball Series 1 Cards event at the Topps offices on February 10, 2016 in New York City.
Kris Connor | Getty Images
Mudrick Capital Acquisition Corporation II announced on Friday that its SPAC merger with The Topps Co. was “mutually agreed” following Major League Baseball’s decision to terminate a 70-year-old trading card deal with Topps.
The Nasdaq-listed blank check company announced in a filing with the Securities and Exchange Commission came the day after news that MLB would not renew its trading card agreement with Topps.
MLB is expected to sell its trading card business to Fanatics, the sports retail company.
The combination of Topps with a purpose-built acquisition company and Mudrick, announced in April, valued Topps at $ 1.3 billion.
MLB has worked with Topps for baseball cards since 1952 and receives a license fee for cards the company sells.
Topps, which was founded in 1938, said Friday it would remain a private company.
“Topps expects to produce essentially all of its currently licensed baseball products under existing agreements by 2025 and will build on the exceptional performance in its Sports & Entertainment and Confectionery segments in the second quarter of 2021.” said the company.
Topps, which was publicly traded before it was privatized in 2007, maintains licensing agreements with the Major League Soccer and National Hockey League.
Murdrick’s full statement on Friday read: “Mudrick Capital Acquisition Corporation II (Nasdaq: MUDS) announced today that the agreement and plan to merge with Topps Intermediate Holdco, Inc. and Tornante-MDP Joe Holding LLC are upon notification on August 2021 by the Major League Baseball and Major League Baseball Players Association that they would not renew their respective agreements with The Topps Company if they were renewed in late 2025 and 2022, respectively.
Topps chairman Michael Eisner, former CEO of The Walt Disney Company, told CNBC’s “Squawk Box” in the spring that Topps had chosen one again because of the flexibility of such a mechanism and its limited distraction SPAC to go public.