FaZe Clan Becomes Public Company Through Merger

Time Stamp: October 28, 2021 5:22 AM

Esports and gaming brand FaZe Clan announced this week that the company plans to go public on the NASDAQ stock market thanks to a merger with B. Riley Principal 150 Merger Corp.

FaZe Clan Becomes Public Company

One of the largest organizations in the esports and gaming industry will now see its face on the NASDAQ. Focusing on youth and digital lifestyles. FaZe looks to change the media and entertainment industry by bridging the generational gap. According to Alexander Lee of Digiday, FaZe sees this as an opportune moment of growth when asked why they went public now.

“We’ve been capital-constrained through really our entire existence, right?” FaZe Clan CEO Lee Trink said. “We’ve raised some real capital, but we’ve been building both the brand and the business under real capital constraints. This is going to give us the balance sheet and the public stock currency to accelerate our growth, and so it feels like a great time for us to enter that new chapter.”

Moving Forward in Gaming

Boasting a combined social media reach of over 350 million, FaZe Clan holds a large fanbase to tap into. Using their audience of next-generation youth and the millennial demographic, pushing forward in the industry is natural. With 80% of its audience age 13-34, the notoriously difficult youth demographic can be more easily reached. Thanks to award-winning esports teams like the Atlanta FaZe and even making the cover of Sports Illustrated, the FaZe Clan company is positioned well to enter the NASDAQ and the public stock market with B. Riley Principal 150 Merger Corp.

“We are thrilled to announce this important milestone of FaZe Clan’s plans to enter the public market,” Trink said. “In our short history, we have evolved from a disruptive content generator to one of the world’s most decorated and successful esports franchises, and now into one of the younger generations’ most recognized and followed brands globally.”

The new merger between FaZe Clan and B. Riley Principal 150 Merger Corp. estimates around $291 million in transactions. The multi-platform growth strategy will use content, entertainment, products, and more to further the brand. After closing the deal, the new company is expected to hold about $1 billion in value. Of that valuation, nearly $275 million comes from cash on a balance sheet. Another esports and gaming company joining the public stock market bodes well for the industry.

Written by Justin Amin

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Source: https://www.esportznetwork.com/faze-clan-becomes-public-company-through-merger/

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