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.
Autentifică-te pentru a adăuga comentarii
Alte posturi din acest grup
Welcome to the world of social media mind control. By amplifying free speech with fake speech, you can numb the brain into believing just about anything. Surrender your blissful ignorance and swall
Few periods in modern history have been as unsettled and uncertain as the one that we are living through now. The established geopolitical order is facing its greatest challenges in dec
Substack and Patreon are vying to become creators’ primary revenue stream.
For most influencers, payouts from platforms like Meta or Google aren’t enough to build a sustainable career. R
The European Commission is coming for “SkinnyTok.”
EU regulators are investigating a recent wave of social media videos that promote extreme thinness and “tough-love” weight loss advice,
The infamous “Am I The A**hole?” subreddit is making its way to the small screen.
Hosted by Jimmy Carr, the new game show for Comedy Central U.K. will feature members of the public appea
Former employees of OpenAI are asking the top law enforcement officers in California and Delaware to s
