Topps was founded in 1938 by brothers Joseph and Abram Shorin. For decades it was a family-owned business best known for its iconic baseball cards. In the 1950s and 1960s baseball cards became tremendously popular among children and collectors. Topps dominated the baseball card market during this time period and established itself as an American icon.
Over the next several decades Topps expanded into other trading cards like hockey, soccer, American football, and non-sports entertainment topics. It also ventured into other confectionery and novelty products. Baseball cards remained the company’s core business and most lucrative product line for many years.
In the early 1990s Topps began facing growing competition from rival card manufacturer Upper Deck. Upper Deck was becoming increasingly popular among collectors due to innovations like holograms, rarer insert cards, and higher quality printing/design. With baseball cards declining in popularity among youth due to the rise of video games and digital entertainment, Topps revenue and market share started declining.
The Shorin family realized they needed to recapitalize the business and leverage public investment to fund growth initiatives. In 1992 Topps baseball card sales dropped over 20% from the year prior to $93 million. This provided incentive for the owners to pursue an initial public offering of stock.
In 1996 Topps went public on the Nasdaq stock exchange under the ticker symbol “TOPP”. The IPO price was $12 per share and the company raised $65 million in gross proceeds, valuing Topps at $176 million overall. Sale of controlling interest in the company diluted the Shorin family stake but provided a lucrative payout after decades of ownership.
Proceeds from the IPO were used to acquire several other entertainment and collectibles brands to expand Topps’ portfolio beyond sports cards. In 1997 Topps acquired Bazooka bubble gum and Creme Savers candy, and in 2004 it acquired the iconic Bazooka Joe comic brand. These brands complemented Topps’ preexisting confections lineup.
However, Topps never fully recovered its baseball card dominance in the face of growing Upper Deck competition. In 2001 Topps baseball card revenues were just $55 million. Topps responded by cutting costs and outsourcing more card manufacturing overseas. But profitability remained pressured as digital entertainment proliferated.
In 2007 Topps stock peaked at $30 per share. But as smartphone usage and mobile gaming accelerated, all trading cards became a less prolific childhood pastime. From 2007-2012 Topps stock plummeted over 80% to below $5 on disappointing sales across its portfolio. During this time Topps transitioned to a more digital focus.
In 2013 private equity firm Michael Eisner’s Tornante Company acquired Topps in a $385 million leveraged buyout, taking the company private once again. This allowed Topps more flexibility to restructure its business without public market pressures. Since the buyout, Topps has streamlined operations, acquired new entertainment IPs, and expanded upon its digital platforms and apps.
In 2021 Topps announced it would once again go public, this time via a Special Purpose Acquisition Company merger at a $1.3 billion enterprise value. The transaction closed in September 2021 and Topps was listed on Nasdaq as “TOPP”. The re-IPO provided Topps with funding to grow its digital offerings as physical collecting declines. Shares currently trade at approximately $10, below the original 1996 IPO price.
In summary, Topps went through multiple periods of public and private ownership during its transition from reliance on physical baseball cards to diversifying into other brands and digital platforms. While facing fierce competition and industry headwinds, Topps has remained an iconic American company after over 80 years in business through its adaptability and reinventions.