A SPAC deal that was doomed at birth:
Faze Clan acquired for $17 million, one year after its $725 million SPAC
/ Faze Clan, the struggling influencer and esports company, gets picked up by a gaming venture firm part-owned by Dallas Cowboys owner Jerry Jones.
By Umar Shakir, a news writer fond of the electric vehicle lifestyle and things that plug in via USB-C. He spent over 15 years in IT support before joining The Verge.
The Verge
Oct 20, 2023, 11:34 AM CD
Gaming analytics and esports brand company Gamesquare, which counts Dallas Cowboys owner Jerry Jones as one of its investors, is acquiring the struggling gaming influencer group Faze Clan. The all-stock deal is worth about $17 million, Bloomberg reports, a steep drop-off from Faze’s $725-million valuation at the time of its special purpose acquisition company, SPAC, merger in July of 2022.
Since the SPAC made it publicly traded on the Nasdaq exchange, Faze Clan, like much of the esports industry, has struggled, with the company posting a $28.4-million loss “through the first half of 2023,” according to Bloomberg. Last month, Faze Clan’s troubles reached an inflection point that led to the firing of CEO Lee Trink, who once compared the company to the rise of hip-hop during an interview on The Vergecast.
Now, under the umbrella of Gamesquare, Faze Clan leadership is reverting back to its original founders, including Richard “Faze Banks” Bengtson, who will serve as CEO, Thomas “Faze Temperrr” Oliveira, taking place as president, and Yousef “Faze Apex” Abdelfattah, who takes over as COO. Faze Clan will operate as an independent division of Gamesquare and will be “re-engaging with its core fanbase,” according to the press release.
Gamesquare also owns esports brand Complexity, under which famous Twitch streamer Tyler “Ninja” Blevins serves as chief innovation officer. Faze Clan and Gamesquare plan to close the acquisition in Q4 2023.
Faze Clan gets picked up by company backed by Dallas Cowboys owner - The Verge |
