The company will thus become a publicly listed company on NASDAQ in the following months. The transaction implies the valuation of the company is in excess of $1B (~£726.2M), thus making FaZe the first ‘esports unicorn’ — or a company worth more than a billion dollars.
The new entity will be called FaZe Holdings Inc. and will be traded under the name FAZE. The merger has been approved by the boards of directors from both companies and is set to be finalised in early 2022.
The company also created a new Twitter profile titled FaZe Comms for news about the organisation.
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The transaction will see the new entity, FaZe Holdings, receive a substantial cash injection of $291M. These funds will be used to finance organic and inorganic growth as FaZe expands its presence across content, gaming, entertainment, consumer products, and the metaverse, the company noted in a release.
Lee Trink, CEO of FaZe Clan, said: “We are thrilled to announce this important milestone of FaZe Clan’s plans to enter the public market. In our short history, we have evolved from a disruptive content generator to one of the world’s most decorated and successful esports franchises, and now into one of the younger generations’ most recognized and followed brands globally.
“We believe FaZe Clan is becoming the voice of youth culture, a brand that sits at the nexus of content, gaming, entertainment and lifestyle in the digital-native world.”
Trink also added that the transaction will provide FaZe with capital and access to the public markets, thus enabling the company to expand and better monetise their projects. According to the release, the combined company will be led by: Trink, who will also become Chairman of the Board; Amit Bajaj, Chief Financial Officer; Kai Henry, Chief Strategy Officer; and Tammy Brandt, Chief Legal Officer.
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Dan Shribman, Chief Investment Officer of B. Riley Financial, and CEO and CFO of BRPM, said: “The business combination with FaZe Clan represents a tremendous opportunity to invest in the future of media and entertainment. With unmatched social media reach and Gen Z engagement, and the opportunity to meaningfully expand its global multi-platform presence across content, gaming, entertainment, consumer products and the metaverse, we believe FaZe Clan is a compelling investment with the potential to create significant value.
Esports Insider says: FaZe Clan is one of the most-known brands in esports, and the valuation of over a billion dollars makes it the most valuable brand for sure. Going public will bring a whole new set of challenges, as well as a financial boost for the company trying to spread its reach to more than just esports and content creation. This is a historic day for North American esports.
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