Source: Alexander Lee via Digiday
FaZe Clan, a prominent North American esports team, has faced controversy and declining share prices, leading to its acquisition by GameSquare, a Texas-based esports company backed by Jerry Jones, the owner of the Dallas Cowboys. The acquisition, unanimously approved by both companies’ boards on October 20, 2023, is expected to close in Q4 2023, pending shareholder approval. This all-stock transaction merges FaZe and GameSquare, with FaZe accounting for around 45% ownership. At the current combined market capitalization of approximately $35.7 million, the deal values FaZe Clan at roughly $16 million.
GameSquare is an esports holding company with various business units like Stream Hatchet and Ninja Labs, aimed at attracting brands and marketing budgets. Through this acquisition, GameSquare aims to strengthen its connection with the competitive gaming audience by gaining control of one of esports’ oldest and most recognizable intellectual properties.
GameSquare’s CEO, Justin Kenna, who is also a former CFO of FaZe Clan, expressed optimism about the deal’s potential to boost the company’s market value. He believes that their status as a micro-cap company could change rapidly with this acquisition, as it’s an all-stock transaction that holds the promise of a significant transformation.
