FaZe Clanis among the biggest network of personalities, content creators, andesportsathletes in the world. With the team’s combined social media reach of over 350m fan base, FaZe Clan is positioned as one of the largest brands in gaming and esports. The company operates 10 competitive esports teams, which have won 30 championships worldwide to date. With this as FaZe Clan’s base, the company has entered a merger agreement that will see them go public on the Nasdaq.
FaZe Clan has entered a definitive agreement, a special purpose acquisition company (SPAC) merger, with B. Riley Principal 150 Merger Corp. that’s already live on the public market. According to a FaZe Clan investor presentation report, the company’s next phase will be looking to bolster its revenue streams through expanding its presence in other regions, improved fan monetization, and acquiring new companies.
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In the new aforementioned investor presentation, FaZe Clan has revealed plenty of interesting hints regarding its moves in the next few years. The merger that’s been agreed upon will see the esports organization reach an “equity value of approximately $1 billion.” FaZe Clan will also receive roughly $291m through the deal to fund its “multi-platform growth strategy.”Along with new team memeber signings, FaZe Clan’s expansion plans extend to games likeHalo, League of Legends, Wild Rift, Free Fire,andApex Legendsas titles it may compete in down the line. The report mentions FaZe would like to extend to markets such as Brazil, China, and the Middle East in the future.
For those unfamiliar with SPAC mergers, SPAC raises capital through an initial public offering (IPO) for the purpose of acquiring an existing operating company. Historically, SPAC mergers have led to some negative financial outcomes for investors post-merger because of the intended timeline. However, SPAC deals have become increasingly popular with tech firms, including Buzzfeed and Draftkings, over the past few years. The speed at which the company has been growing since 2010 may not be too worried about their goals in the deal despiteFaZe CLan sometimes courting controversy.
The organization thatwon its first Call Of Duty Majorthis year won’t be the first publicly traded esports team, however, it is hard to deny that FaZe Clan has evolved into a full-fledged brand. FaZe Clan said it will use proceeds from the SPAC merger to fund “organic and inorganic growth,” suggesting it is looking at M&A deals, across content, gaming, entertainment, and consumer products. Upon completion of the proposed merger, BRPM will change its name to “FaZe Holdings Inc.” The combined company’s common stock is expected to be listed on NASDAQ under the new ticker symbol “FAZE.”
TheFaZe Clandeal is expected to be closed in the first quarter of 2022.
