FaZe Clan Has Been Sold For $17 Million Just Two Years After They Went Public At A $1 Billion Evaluation

Big news out of the gaming world this morning. In case you don't keep up with the nerds, the rise and fall of FaZe Clan has been well documented on the internet. Because I don't want to bore you like a Castellani Tigers blog, let me keep it relatively simple for you. FaZe has been the biggest Esports organization virtually for as long as its been around. A couple of bad decisions here and there and all of a sudden they were going public at a $1 billion evaluation a few years ago:

Big money for some nerds that oldheads say are ruining the youth or something. Anyway, you don't have to be a financial advisor to be able to see how well that went:

This led to a bunch of the OG FaZe guys coming out and critiquing those exact same corporate positions they hired to make them more of a whole company. The stock tanked and they were teetering on even being able to remain on the stock exchange after it plummeted. This is where Jerry Jones and GameSquare stepped in. GameSquare is the parent company of Complexity, which is just another gaming organization, except they (seemingly) know what they're doing.

In case you like lengthy press releases: 

SOURCE: The acquisition brings together two complementary businesses to create one of the world's leading content, media and entertainment companies focused on gaming, esports, and youth culture. The combined company will be powered by a progressive end-to-end platform of leading media and agency organizations, gaming and esport teams, creative services, and technology capabilities. Combined, FaZe Clan and GameSquare generated annual revenue of approximately $138 million and achieved a 26.3% gross margin in 2022. Management expects to realize over $18 million in run-rate cost savings from the FaZe Clan acquisition, supported by reduced duplicate corporate costs and other cost savings. The combined company plans to give guidance once the transaction is closed.

"The gaming community represents one of the largest and most engaged segments of the attention economy," stated Justin Kenna, CEO of GameSquare. "The acquisition of one of the biggest names in gaming serves as a perfect illustration of how we have built a powerful infrastructure with expansive scale that we can use to leverage the full spectrum of resources within the GameSquare ecosystem. We are also thrilled to welcome back the founders of FaZe Clan and their fans, one of the most deeply engaged communities born on the internet."

"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 Richard "FaZe Banks" Bengtson, who will take on the CEO role of FaZe Clan after the transaction closes. "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."

"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. "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."

Significant Strategic Combination and Financial RationaleThe combination with FaZe Clan continues GameSquare's strategy of acquiring leading companies focused on esports, gaming, and youth culture to increase capabilities, grow scale, unlock cost savings, empower fans and creators, and drive value for shareholders.

The combination of FaZe Clan and GameSquare:

Returns FaZe Clan's founders to lead the brand and reestablish authenticity

• Richard "FaZe Banks" Bengtson to be CEO of FaZe Clan, which will operate as a wholly owned subsidiary and independent division of GameSquare
• Thomas "FaZe Temperrr" Oliveira to be President of FaZe Clan
• Yousef "FaZe Apex" Abdelfattah to be COO of FaZe Clan
• Founders are focused on refreshing the FaZe Clan brand, re-engaging with its core fanbase and empowering individual FaZe Clan creators and their communities

Establishes leading platform connected to esports, gaming and youth culture

• Creates the top creator network in gaming and esports with over 250 million hours of content watched in 2022 across both companies' talent networks
• Talent network includes leading gaming, sports, and entertainment personalities such as Ninja, TimTheTatman, Max Holloway, Trevon Diggs, FaZe Banks, FaZe Temperrr, FaZe Apex, FaZe Nickmercs, FaZe Rug, FaZe Swagg and more.
• Combines hyper-engaged global fanbases with over 1 billion combined social followers, with a core focus on 13 - 34 -year-old audiences

That means absolutely nothing to 99.9% of you. Long story short, FaZe failed under corporate rule and now the original guys who made it what it is are back in charge. Reminds me of another company I know! So a congrats are in order for everyone but that one employee who was irreplacable and the league leader in jersey sales here at Barstool Sports:

My sources tell me he's not around there anymore anyway. FaZe Up!