FaZe Clan is reportedly evaluating acquisition offers from other publicly traded gaming companies, just a year after the massive gaming and esports organization went public only for the stock price to plummet below $1.00 less than a month into 2023.
Per a report from the Sports Business Journal’s Kevin Hitt, FaZe is weighing two separate offers to buy the organization from different gaming and esports companies; one from GameSquare and one from Enthusiast Gaming.
GameSquare, backed by majority investor and Dallas Cowboys owner Jerry Jones, owns and operates the Complexity Gaming esports organization, which competes across multiple titles and fields several popular streamers including TimTheTatman and Ninja. Enthusiast Gaming owns and operates the Luminosity Gaming organization, a Canada-based group that manages franchises in both the Overwatch League and the Call of Duty League, via the Vancouver Titans and Seattle Surge, respectively.
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While details on the offers are being discussed, Hitt reports via sources that any possible deal “would include some form of an equity swap deal and a possible cash infusion.”
FaZe, an organization that competes across numerous esports titles and boasts a large roster of content creators and streamers, went public on the NASDAQ in July 2022 via a SPAC-merger with B. Riley. For the next two months, the stock price fluctuated between $12 and $20, but fell sharply at the start of October and has steadily declined ever since. In March 2023, NASDAQ issued a delisting notice after the stock stayed below $1.00 for 30 consecutive days, which the company has until September to resolve.
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This past May, FaZe was forced to lay off roughly 40 percent of its staff, just months after laying off 20 percent of its workforce in February.
Published: Jul 24, 2023 10:31 am