The California-based e-commerce company eBay has entered into an agreement to buy TCGplayer.
eBay announced on Monday that it is poised to acquire TCGplayer, a niche online marketplace for trading cards for up to $295 million. TCGplayer is a widely used platform for buying and selling trading card games, which market burgeoned during the pandemic.
In a press release, eBay said that the deal to acquire TCGplayer for about $295 million is yet subject to closing conditions and regulatory approvals and should close in the first quarter of 2023. eBay VP of Collectibles Dawn Block said that the deal would enable them to "deliver an online destination that collectors love."
TCGplayer Eyes Bigger Growth with Ebay
TCGplayer is known as a popular buying and selling platform for trading card games such as Pokémon, Yu-Gi-Oh!, and Magic: The Gathering. But more than just trading cards, it's also known for offering seller tools and services such as storage and order fulfillment, The Verge reported.
eBay's acquisition of TCGplayer is backed by a firm belief that trading card games is an "attractive category" with "substantial growth." TCGplayer founder and CEO Chedy Hampson expressed excitement over the acquisition, which would allow them to continue operating "independently" within the eBay platform while ensuring a great customer experience for hobbyists and communities.
TCGplayer traces its roots back to 2008, when it began as a string of Syracuse-based hobby stores that evolved into an e-commerce platform, TechCrunch reported. The company now employs over 600 workers and will continue to operate autonomously after eBay acquires it.
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eBay Solidifies Its Hold on the Trading Cards Market
The San Jose, California based multinational e-commerce company has long been the go-to of trading card enthusiasts to purchase and sell their cards. But eBay is taking it a step further by expanding its authentication service to provide support for ensuring valuable trading cards worth at least $750 can be authenticated.
eBay explained that the decision to add such authentication support for trading cards came about due to the sheer volume of activity on that one category on its ecommerce platform. eBay also admitted that the trading cards category had been growing "significantly faster" than its overall marketplace, with up to $2 billion in transactions in just the first six months of 2021. In comparison, this amount is roughly the same as all trading card transactions made in 2020.
But eBay continues to face stiff competition from Facebook's Marketplace and other similar services or buying apps, which is why the company is striving to keep its hold on the trading cards market. Acquiring TCGplayer is a step in the right direction for the company that recognizes increasing potential in trading cards, as eBay admitted that it seeks to "maintain its position as a desirable platform for trading card sellers."
This is the second major purchase for eBay, which in June announced that it acquired KnownOrigin, a popular marketplace for digital art called NFTs or non-fungible tokens. Engadget reported that eBay refused to disclose how much it paid to buy the established marketplace, but said that the move was an "important step in...tech-led reimagination."
