FaZe Clan is Going Public on NASDAQ, First Org Worth $1b?
FaZe Clan is one of the most recognizable names in both entertainment and esports, and now they’re going public on NASDAQ. That means FaZe Clan will be a publicly-traded company, and fans can put their hard-earned money down to have a stake in the overall company. This is due to a merger that we can expect to have its deal closed out in Q1 2022. It’s being said that FaZe Clan could be the first org worth $1B and that is titanic. Fans are going to be able to invest in FaZe Clan when the public stock hits the NASDAQ – the stock exchange. What does the future hold for FaZe Clan as it heads to being a public company on the NASDAQ?
A $291M Dollar Deal
Announced on Twitter, FaZe Clan revealed they are going public on NASDAQ via a video and a link to the official press release. FaZe Clan is going to merge with B. Riley Financial and is expected to reach an equity of $1B. According to the press release, “estimated gross transaction proceeds total $291 million,” so that’s pretty huge cash. This could make FaZe Clan the most financially successful org going in esports.
FaZe Clan’s CEO, Lee Trink spoke about this huge announcement:
“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. This transaction will provide us capital and access to the public markets, which will help us accelerate the expansion of our multi-platform and monetization strategy.”
What can we expect out of this move? FaZe Clan will improve revenue streams (via fan monetization) acquiring new companies and expanding their overall global presence. This will of course mean more esports moves for the company as they seek to grow from 50m annual revenue (2021) to 651m in 2025. A bold goal, but if anyone can reach it, it’s them.
Dan Shribman, Chief Investment Officer of B. Riley Financial also made a statement:
“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. We are excited to partner with Lee, Amit and the incredible talent that make up the FaZe Clan team. Lee has surrounded himself with a creative and energetic team and we look forward to working with them on this journey.”
What Does the Future Hold?
What’s on the horizon for FaZe Clan as they go public on the NASDAQ? More incredible merch drops, that’s for sure. We can only imagine they have cooked up some brand-new fan engagement strategies as well. When it comes to esports, Halo, League of Legends, Wild Rift, Free Fire, and Apex Legends are all titles FaZe Clan has earmarked for future plans. They’re also looking at new markets to expand into, such as Brazil, China, and the Middle East.
It’s certainly a huge move for FaZe Clan, and we can only hope it’s a successful move. We cannot help but wonder what changes, if any come with FaZe being publicly traded, and fans/investors having more of a say in what goes down within the esports org. While they aren’t the first esports org to go public, it’s nonetheless a huge change for FaZe going forward.
It cannot be overstated how much social media presence and popularity FaZe Clan has with the public. So many young fans are diehard FaZe fans. This kind of move could do a lot to bring eyes to esports all over the world.