GameSquare Is Officially Acquiring FaZe Clan
Esports company GameSquare is set to acquire FaZe Clan.
In a statement issued earlier on Friday from GameSquare and FaZe Clan, they said, “The combined company will be powered by a progressive end-to-end platform of leading media and agency organizations, gaming and esport teams, creative services and technology capabilities.” Both the companies’ combined annual revenue is expected to total approximately $138 million USD in 2022. With the current deal FaZe Clan is valued at about $16 million USD. The value has declined since FaZe Clan initially announced plans to go public two years ago. At the time, the company claimed the deal would give it a value of $1 billion USD via the SPAC merger.
The acquisition deal would see FaZe Clan founders still lead the company with Richard “FaZe Banks” Bengtson as CEO, Thomas “FaZe Temperrr” Oliveira as president and Yousef “FaZe Apex” Abdelfattah as COO. This all-stock deal is set to be closed in Q4 of 2023 and has now been approved by both companies’ boards and is currently subject to approval by shareholders. GameSquare shareholders are will own about 55% of the of the merged company if the deal goes through, leaving the rest of the ownership for FaZe Clan. GameSquare CEO Justin Kenna said, “The gaming community represents one of the largest and most engaged segments of the attention economy. The acquisition of one of the biggest names in gaming serves as a perfect illustration of how we have built a powerful infrastructure with expansive scale that we can use to leverage the full spectrum of resources within the GameSquare ecosystem. We are also thrilled to welcome back the founders of FaZe Clan and their fans, one of the most deeply engaged communities born on the internet.”
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