FaZe Clan set to become first $1b esports org with public listing
North American esports organization and media company FaZe Clan have announced plans to go public on the Nasdaq exchange, allowing some of their fans to invest in the company.
With a reported combined social media reach of over 350m fans, FaZe Clan are among the biggest network of personalities, content creators, and esports athletes in the world.
To capitalize on their fan base and positioning as one of the largest brands in gaming and esports, they’ve entered a merger agreement that will see them go public on the Nasdaq. The deal is expected to be closed in the first quarter of 2022.
The merger that’s been agreed upon will see the org reach an “equity value of approximately $1 billion” and they will roughly receive $291m through the deal to fund their “multi-platform growth strategy.”
Moving into their next phase, FaZe Clan will be looking to bolster their revenue streams through improved fan monetization, expanding their presence in other regions, and acquiring new companies.
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They have entered a definitive agreement with B. Riley Principal 150 Merger Corp., an entity with the sole intent of acquiring companies, that’s already live on the public market.
In their new investor presentation, FaZe Clan have revealed plenty of interesting hints regarding their moves in the next few years. Their estimated revenue for 2021 is $50m, with sponsorships serving as their largest revenue stream, and by 2025 they’re aiming to boost their annual revenue up to $651m.
In line with their expansion plans, they’ve identified Halo, League of Legends, Wild Rift, Free Fire, and Apex Legends as titles they may compete in down the line. Brazil, China, and the Middle East are markets they will be targeting in the future.
“We are thrilled to announce this important milestone of FaZe Clan’s plans to enter the public market,” said FaZe Clan CEO Lee Trink. “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.
“This transaction will provide us capital and access to the public markets, which will help us accelerate the expansion of our multi-platform and monetization strategy.”