The competitive e-sports group is merging with B. Riley Principal 150 Merger Corp. in a deal that values the combined companies at—get ready for it—approximately $1 billion.
The youth-focused 'gaming, lifestyle and media platform, will hit the NASDAQ with the ticker symbol FAZE in 2022.
The Los Angeles-based FaZe Clan markets itself as a leading online gaming company and brand. Its business includes e-sports, merchandise, and digital content.
FaZe started in 2010 and they garnered a reputation for their innovative gameplay in the game Call of Duty: Modern Warfare 2. The group has expanded and now features teams that compete in a variety of popular games such as 'Call of Duty', 'Counter-Strike: Global Offensive', 'Fortnite', 'PlayerUnknown’s Battlegrounds', and more.
The group's website says the clan has a global reach with a community of roughly 350 million people across its social media platforms. FaZe claims that 80% of the members are in the most coveted age group, 13 to 34, which makes it especially valuable to advertisers. The group has partnered with large brands such as McDonald’s Corp. and Totino’s Pizza Rolls, which are hoping to reach younger consumers.
"We believe Faze Clan is becoming the voice of youth culture, a brand that sits at the nexus of content, gaming, entertainment, and lifestyle in the digital-native world," Faze CEO Lee Trink said. "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."
Last year, the company announced the creation of an entertainment studio called FaZe Studios. The new studio focuses on developing feature films and scripted TV shows that fall in line with the 'aspirational gaming lifestyle' brand.
FaZe has a group of high-profile investors that believe the company will continue to grow. The roster includes musicians Pitbull, Swae Lee, and Offset and professional athletes Kyler Murray, Ben Simmons, and Nyjah Huston.
Famed record executive and entrepreneur Jimmy Iovine is also on the roster.
The deal comes at a time when SPAC-related mergers are increasing. They enable private companies like Faze to go public without having to go through the slower and more regulated process of an initial public offering.
Sources: Wall Street Journal, PC Gaming
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