Video-game-influencer company FaZe Holdings is being acquired by Texas-based esports company GameSquare Holdings, the companies said on Friday.
The all-stock deal will give FaZe investors roughly 0.14 GameSquare shares per every FaZe share, making the acquisition worth around $17 million, Bloomberg reports. As part of the deal, GameSquare’s largest investors, which include the family of Dallas Cowboys owner Jerry Jones, have agreed to buy $10 million in stock in a private placement, if necessary.
Shares of FaZe Holdings went public last July after a merger with a special-purpose acquisition company (SPAC) at a valuation of $1 billion. The company has positioned itself as an influencer platform for the video game space, working with prominent brands such as McDonald’s and Nissan. However, it started to lose clients after accusations of sexism and homophobia shortly after its arrival on the Nasdaq.
The stock has struggled since and was trading at well below a dollar per share as early as January of this year, down from its $24.69 debut, putting the company at risk of delisting by the Nasdaq exchange. The stock is down a whopping 90% this year, closing Thursday at slightly over 18 cents per share.
Shares were up almost 10% on Friday morning after news of the deal broke.
FaZe Clan was founded by a group of teen boys who became famous on YouTube for playing Call of Duty. Investors include musicians Offset and Pitbull as well as NBA stars Ben Simmons and Jamal Murray.
In a statement issued by the two companies Friday, the duo 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.”
As part of the deal, several FaZe founders will take executive positions at the merged company, including former YouTube influencer Richard “FaZe Banks” Bengtson, who will become CEO of the acquired company. Thomas “FaZe Temperrr” Oliveira will become president, while Yousef “FaZe Apex” Abdelfattah will become a chief operating officer.
When the deal closes, GameSquare’s shareholders will own 55% of the merged company. GameSquare is struggling lately as well. The company had a net loss of $8.45 million on sales of $19.2 million in the first half of 2023.
The deal is expected to close in the fourth quarter.
Login to add comment
Other posts in this group
The “holy airball” trend that’s all over your For You page is the latest way the internet is sharing humble brags.
The videos, which have amassed millions of views on T
If you’ve ever fancied your chances in the Hunger Games, now you have the opportunity to volunteer as tribute.
Lionsgate just announced an open audition call for a minor role in
Welcome to AI Decoded, Fast Company’s weekly newsletter that breaks down the most important news in the world of AI. You can sign up to receive this newsletter ever
A man says he was tortured for weeks in a New York townhouse. Another in Paris was held for ransom and his finger cut off. A couple in Connecticut were carjacked, beaten and thrown into a van.
eOlipop’s surging popularity has taken the $60 billion soda industry by storm. As Gen Z and millennials ditch sugary sodas, Olipop is leading the pre-biotic beverage trend, sparking the like
Meta has spent 15 years shunning the iPad. Now, it seems they’re finally ready to embrace the tablet lovers.
WhatsApp users can finally text from the big screen. On Tuesday, Meta a
According to new research from Whop, a marketplace for digital products, one in three Gen Z consumers now make purchasing decisions based on recommendations from AI-generated influencers.
