Faze Clan, a gaming startup that went public in a $1 billion SPAC deal a year ago, acquired for $17 million
FaZe Clan, a once-prominent eSports gaming startup that went public in a $1 billion SPAC deal in October 2022, has been acquired by GameSquare Holdings in an all-stock transaction deal valued at $17 million.
As part of the acquisition agreement, FaZe Clan shareholders will receive approximately 0.14 GameSquare shares for every FaZe share. The news comes almost a year after FaZe Clan went public through a merger with a blank-check firm with B. Riley Principal 150 Merger Corp.
The acquisition of FaZe Clan is set to bolster GameSquare’s foothold in the vibrant world of esports and gaming. FaZe Clan boasts a substantial and highly engaged fan base, alongside a roster of renowned content creators and professional esports players.
The deal also serves as a reflection of the obstacles FaZe Clan encountered after going public. The company had witnessed a sharp decline in its stock price post-IPO, coupled with controversies that included allegations of insider trading and fraudulent activities.
GameSquare Holdings, a Texas-based esports company, boasts ownership of several esports teams, with Complexity Gaming being among them. Backed by a roster of notable investors, including the family of Dallas Cowboys owner Jerry Jones, GameSquare Holdings is poised to make its mark in the esports arena.
“FaZe Holdings Inc., the struggling video game influencer company with 512 million followers across social media, is being acquired by GameSquare Holdings Inc. FaZe investors will receive about .14 GameSquare shares for every FaZe share, according to terms shared with Bloomberg News. That makes the acquisition worth about $17 million. GameSquare’s largest investors — the family of Dallas Cowboys owner Jerry Jones and Goff Capital — have agreed to commit $10 million as part of the deal. GameSquare plans to bring several FaZe founders back to top positions at the company,” Bloomberg reported.
While the long-term consequences of this acquisition on FaZe Clan remain uncertain, one thing is evident: the company’s trajectory has shifted significantly from its position just a year ago when it made its foray into the public market. The esports landscape is in for some intriguing developments.
FaZe was founded in March 2020 by Yousef Abdelfattah. The Los Angeles-based gaming startup is known for its original content and hyper-engaged global fanbase of 215 million combined across all social platforms. FaZe started out as internet kids armed with cameras and a diehard love for video games, the company said on its website. They later turned our passions and struggles into a global creative engine that has no boundaries and continues to define gaming culture.
FaZe has seen a series of successes since its inception over a year ago. The startup recently partnered with major companies including McDonald’s Corp and Verizon Communications to target young consumers. Two months ago, FaZe onboarded LeBron “Bronny” James Jr., son of basketball legend LeBron James. The video game enthusiast joined FaZe as a member and is expected to stream games for the organization.