FaZe Holdings Inc (FAZE)

[boston127]

More DD.

There has to be good with the bad. FAZE was once valued at $725M, but the company has failed. They have since been bought by Gamesquare, a company owned in part by the owner of the Dallas Cowboys football team, for $17M. The company lost its way. With the new purchase, it is free and clear of debt and the original Founders are back running the show.

Gaming analytics and esports brand company Gamesquare, which counts Dallas Cowboys owner Jerry Jones as one of its investors, is acquiring the struggling gaming influencer group Faze Clan. The all-stock deal is worth about $17 million, Bloomberg reports, a steep drop-off from Faze’s $725-million valuation at the time of its special purpose acquisition company, SPAC, merger in July of 2022.

Since the SPAC made it publicly traded on the Nasdaq exchange, Faze Clan, like much of the esports industry, has struggled, with the company posting a $28.4-million loss “through the first half of 2023,” according to Bloomberg. Last month, Faze Clan’s troubles reached an inflection point that led to the firing of CEO Lee Trink, who once compared the company to the rise of hip-hop during an interview on The Vergecast.

Now, under the umbrella of Gamesquare, Faze Clan leadership is reverting back to its original founders, including Richard “Faze Banks” Bengtson, who will serve as CEO, Thomas “Faze Temperrr” Oliveira, taking place as president, and Yousef “Faze Apex” Abdelfattah, who takes over as COO. Faze Clan will operate as an independent division of Gamesquare and will be “re-engaging with its core fanbase,” according to the press release.