GameSquare Holdings Inc. has revealed the company has reached a “definitive agreement” with FaZe Clan to acquire the popular brand.
This move will be yet another move by the company to strengthen its position in esports and gaming, a segment it’s been actively participating in with the backing of esports organization Complexity, among other ventures.
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The deal is “an arm’s length all-stock transaction” that will see the acquirer purchase every bit of FaZe’s stock after it saw a decline since going public in 2022.
The deal is set to be US$17 million, much lower than a 2021 valuation by the organization of US$1 billion. According to a report from the Sports Business Journal, Enthusiast Gaming had also shown interest, but ultimately, GameSquare came away with the brand.
GameSquare features Dallas Cowboys owner Jerry Jones, who has been around in the esports space for years. Jones’ first big jump into the space was with Complexity, who received backing from the sports team owner in 2017. The Canadian digital media agency would then acquire the organization for $27 million in 2021 with Jones on the board, leading the investment round.
The North American organization currently sports several esports teams in games such as Counter-Strike 2 and Halo. In addition, they currently have Tyler “Ninja” Blevins and Tim “timthetatman” Betar as Chief Innovative Officer and co-owner of the esports organization, respectively.
Another large part of the deal is the return of several prominent FaZe founders to the organization. The press release reveals the returning members in addition to the roles they’ll fill.
- Richard “FaZe Banks” Bengtson to be CEO, which will operate as a wholly owned subsidiary and independent division of GameSquare.
- Thomas “FaZe Temperrr” Oliveira to be President.
- Yousef “FaZe Apex” Abdelfattah to be COO.
“I’m confident that with Tommy, Apex, and me back in charge of the brand, Faze Clan will get back to where it was in its peak years,” Bengtson said as part of the press release. “We grew up on the internet and understand this brand better than anyone ever could. We are grateful to have found a partner in GameSquare who sees that value in us and can help execute our vision. We’re going to produce first, talk later.”
Many FaZe fans are hopeful the return of the original crew will see the brand return to its former glory. With the powerhouse of creators, the two brands now have in their arsenal, it will be fun to watch how they try to utilize their roster in unique and collaborative ways.
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