Faze Clan Acquired By GameSquare, FaZe Banks Returns
On October 20, GameSquare announced that it acquired FaZe Holdings Inc. in an “arm’s length all-stock transaction.” GameSquare will use its media and marketing to help FaZe Clan continue to connect with esports fans and youth culture.
“Joining forces with GameSquare creates greater scale and exciting opportunities in the emerging market for gaming and youth culture,” stated Christoph Pachler, Interim CEO of FaZe Clan, in a press release. “The strength of the FaZe brand and GameSquare’s infrastructure are a powerful combination that will enable FaZe shareholders to benefit from the combined company’s long-term value creation potential.”
GameSquare CEO Justin Kenna added that the acquisition of “one of the biggest names in gaming” is proof that their infrastructure is “powerful” and “expansive.” The strategy will be empowering fans and creators and driving value for shareholders.
The acquisition will also bring back FaZe Clan’s original founders. Richard “FaZe Banks” Bengtson will be the CEO of FaZe Clan, operating as a wholly owned subsidiary and independent division of GameSquare. The President will be Thomas “FaZe Temperrr” Oliveira, and the COO will be Yousef “FaZe Apex” Abdelfattah. They will be focused on refreshing the brand and re-engaging with its fanbase.
“I’m confident that with Tommy, Apex and me back in charge of the brand, FaZe Clan will get back to where it was in its peak years,” stated FaZe Banks. “We grew up on the internet and understand this brand better than anyone ever could. We are grateful to have found a partner in GameSquare who sees that value in us and can help execute our vision. We’re going to produce first, talk later.”
FaZe Clan and GameSquare generated an annual revenue of approximately $138 million, according to a press release. The acquisition is an all-stock deal that is expected to close in the fourth quarter of the year. Right now, it needs to be approved by shareholders. When the deal is completed, GameSquare shareholders will own 55% of the merged company and FaZe Clan shareholders will own 45%.
