FaZe Clan to Be Acquired by Jerry Jones-Backed GameSquare in All-Stock Deal; Richard Bengston Named CEO

Jennifer Maas
·2 min read
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Esports company GameSquare, backed by Dallas Cowboys owner Jerry Jones, is set to acquire struggling influencer and gamer brand FaZe Clan.

Per a statement issued Friday by GameSquare and FaZe Clan, “The combined company will be powered by a progressive end-to-end platform of leading media and agency organizations, gaming and esport teams, creative services and technology capabilities.”

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According to the companies, their combined annual revenue totaled approximately $138 million in 2022. This deal currently values FaZe Clan at approximately $16 million. When FaZe Clan announced plans to go public two years ago via a special purpose acquisition company (SPAC) merger, it claimed the deal would give it an implied value of $1 billion.

As part of the deal, GameSquare is appointing FaZe Clan founders at the top of the brand, which will operate as an independent division of GameSquare, to “reestablish authority”: Richard “FaZe Banks” Bengtson as CEO, Thomas “FaZe Temperrr” Oliveira as president and Yousef “FaZe Apex” Abdelfattah as COO. Currently, Christoph Pachler serves as interim CEO of FaZe Clan.

The acquisition, which is an all-stock deal, is expected to close in the fourth quarter of 2023. It has been approved by both companies’ boards and is subject to approval by the shareholders. Upon completion of the deal, current GameSquare shareholders will own approximately 55% of the merged company, while current FaZe Clan shareholders will own approximately 45%.

GameSquare expects to reach $18 million in cost saving synergies from the FaZe Clan acquisition. The combined company will offer additional details about structural changes upon the close of the deal.

“The gaming community represents one of the largest and most engaged segments of the attention economy,” GameSquare CEO Justin Kenna said in a statement. “The acquisition of one of the biggest names in gaming serves as a perfect illustration of how we have built a powerful infrastructure with expansive scale that we can use to leverage the full spectrum of resources within the GameSquare ecosystem. We are also thrilled to welcome back the founders of FaZe Clan and their fans, one of the most deeply engaged communities born on the internet.”

Bengtson commented, “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. 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.”

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