FaZe Clan officially have new ownership
GameSquare has officially closed its deal to acquire FaZe Clan it has been announced. The deal follows GameSquare selling Complexity back to former owner Jason Lake last week.
The deal, valued at approximately $15.75M, will see FaZe Clan delisted from the public stock exchange. Top of GameSquare's agenda will be steadying the ship at FaZe Clan. The organisation reported losses of over $50 million in 2022.
GameSquare hoping to find repeat success with FaZe Clan
GameSquare are well aware of the challenges that face them financially with this deal. They are pointing to the money raised from the sale of Complexity as "strengthening the balance sheet" in their release announcing todays news.
GameSquare do have a reasonable track record in the esports and gaming space. Under their stewardship, Complexity "increased revenues by 177% between 2021 and 2022".
However it is clear that FaZe Clan needs to continue to make significant savings in order to firm up their financial footing. 2023 has been a year of cutbacks for the organisation. FaZe had removed approximately $31 million of annual operating costs by the third quarter of 2023 relative to their position at the end of 2022.
However, the poor position they find themselves in is still clear. FaZe are still expecting to have to remove a further $15 million in operating costs during 2024.
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FaZe Clan brand still strong
With all that doom and gloom, why do GameSquare even want to acquire FaZe Clan in the first place? Frankly, it is because of the ongoing strength the brand has. FaZe is synonymous with even some of the most casual gamers. You can't place a value on being so well embedded in gaming culture.
GameSquare are only adding to this. They bring big names to the table as well. That means the joint company has a roster that includes including Ninja, TimTheTatman, Max Holloway, Trevon Diggs, FaZe Banks, FaZe Temperrr, FaZe Apex, FaZe Nickmercs, FaZe Rug, FaZe Swagg and more.
Such an all star team gives great potential for a slimmed down and fiscally responsible FaZe Clan to still be a big player in the esports and gaming sector.
As part of a renewed focus on the strong brand, this deal returns FaZe Clan's founders. FaZe Banks, FaZe Temperrr, and FaZe Apex will lead the brand moving forward. GameSquare hopes that this will "reestablish authenticity" with FaZe Clan brand.
