Banks to return as FaZe’s CEO as GameSquare acquire FaZe Clan

GameSquare’s acquisition of FaZe Clan signifies the return of founding member FaZe Banks to leadership as the company’s new CEO.

After accumulated losses caused the esports organization’s share price to decline, GameSquare acquired FaZe Clan in an all-stock deal. The acquisition will bring back the original founder of the group, and most importantly, Richard ‘FaZe Banks’ Bengtson, who will take over as CEO of FaZe Clan.

Furthermore, Thomas “FaZe Temperrr” Oliveira will serve as the company’s president, and when the legalities are finished, Yousef “FaZe Apex” Abdelfattah will take on the role of COO. Following the merger, FaZe Clan will continue to operate as an autonomous section of GameSquare and a fully owned subsidiary led by FaZe Banks.

FaZe Banks is now FaZe Clan’s CEO. 👀‼️

This comes following FaZe Clan being acquired by GameSquare, the parent company of Complexity.

Is FaZe Clan about to make a big comeback? pic.twitter.com/aElw0JioJ5

— DramaAlert (@DramaAlert) October 20, 2023

 

It is anticipated that the all-stock transaction will conclude in the year’s fourth quarter. The transaction still has to be approved by shareholders, even though the boards of both firms have already given it their approval. Following the completion of the transaction, 45% of the combined firm will belong to FaZe Clan and 55% to GameSquare stockholders.

FaZe Clan and GameSquare brought in around $138 million a year in income in 2022, according to a press release. According to reports, the FaZe Clan’s shares would be worth around $16 million if the merger were to be approved today.

From Faze’s $725 million valuation at the time of its merger with a special purpose acquisition company (SPAC) in July 2022, this marks a sharp decline. Although this number has not yet been formally verified, it is important to note that it indicates a substantial change in the organization’s financial situation.

GameSquare’s plan for FaZe Clan

GameSquare stated in their official statement that they want to utilize FaZe Clan as a separate branch and subsidiary of GameSquare in order to restore the group’s legitimacy. Moreover, GameSquare reports that management anticipates cutting corporate expenses by around $18 million as a result of the merger.

GameSquare has brought together a number of top content creators under one roof with this smart acquisition. With the acquisition of FaZe, their pool of content creators will now include NickMercs, FaZe Rug, and FaZe Swagg in addition to the talents they previously had under the Complexity name, such as Tim The Tatman and Ninja.

The acquisition also raises the possibility of a conflict of interest between two of the most popular esports organizations, fielding talented rosters across different esports games. GameSquare now owns both FaZe and Complexity, rivals in titles including Halo, Apex Legends, FIFA, Fortnite, Rocket League, and Counter-Strike. It has long been established that parent companies with several teams have difficulty maintaining track of their rosters in order to prevent potential conflicts.

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