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GameSquare Acquires Struggling Esports Firm FaZe Clan in All-Stock Deal Valued at $18.5 Million

Esports giant FaZe Clan's drastic drop in valuation precedes sale to GameSquare, creating the largest business in esports through the merger. Following the acquisition, FaZe founders will regain control, aiming to revitalize the struggling brand.

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Overview

  • GameSquare has acquired FaZe Clan in an all-stock deal, at a valuation of $18.5 million. This is a drastic drop from FaZe Clan's previous valuation of over $1 billion just 14 months ago, when shares traded at $24 each.
  • The merger will result in the largest esports business in terms of social media reach, with 1 billion followers. The combined companies generated $188 million in revenue based on 2022 results.
  • GameSquare plans to achieve $18 million in annual cost savings by streamlining corporate costs and conducting other cost-cutting measures.
  • FaZe Clan will operate as an independent but wholly owned subsidiary of GameSquare and will be led by the returning founders, with Richard 'FaZe Banks' Bengtson as CEO.
  • FaZe Clan has struggled with a decrease in sales and the departure of key figures, such as celebrity backer, rapper Snoop Dogg, who left the board of the company while it was in decline.