Source: Andrew Toth / Getty / FaZe Clan
Esports is struggling, and you don’t have to look further than what popular esports and influencer brand FaZe Clan is going through. Now, the organization is hoping after being purchased, it can stay afloat.
Spotted on The Verge, Faze Clan has been acquired in a stock deal worth about $17 million by gaming analytics and Esports brand company Gamesquare.
The $17 million is a steep drop from Faze’s $725-million valuation at the time of its special purpose acquisition company, SPAC, merger in July of 2022.
The website also notes that Dallas Cowboys owner Jerry Jones is an investor in Gamesquare.
Like many entities in the Esports industry, the Esports organization has struggled since SPAC made it a publicly traded company on the Nasdaq exchange, posting a $28.4-million loss “through the first half of 2023,” Bloomberg reports.
A History of Struggle
Before news of the $17 million acquisition, FaZe Clan gave CEO Lee Trink the boot. The Esports organization boasted big names like Lil Yachty and LeBron James’ son, Bronny James, as members and NBA hooper Ben Simmons as an investor.
The organization abruptly lost one of its most prominent investors, Snoop Dogg, who reportedly lost millions after investing in the Esports organization.
With the acquisition by Gamesquare, FaZe Clan hopes that hitting the reset button will help right the sinking ship. FaZe Clan’s leadership is reverting to its original leadership structure.
Richard “Faze Banks” Bengtson will serve as CEO, Thomas “Faze Temperrr” Oliveira will become president, and Yousef “Faze Apex” Abdelfattah will take over as COO.
Via a press release, FaZe Clan says it will be “re-engaging with its core fanbase” in hopes that it will return the organization to the top of Esports relevancy.
We shall see if this all works out for the once mega-popular Esports organization.
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Photo: Andrew Toth / Getty
