FaZe Clan set to become public company after merger approval

FaZe Clan has confirmed that the merger with B. Riley Principal 150 Merger Corp., which will allow the organization to become a publicly-traded company, has been approved by the Securities and Exchange Commission.

With the SPAC (Special Purpose Acquisition Company) merger now being approved by the U.S. Securities and Exchange Commission (SEC), FaZe Clan is set to go public on the NASDAQ stock exchange, allowing fans to invest in the company and therefore support its further growth and its expansion. 

The $1 billion merger 

FaZe first revealed its intention to go public in October 2021, announcing that the deal with the B. Riley Principal 150 Merger Corp. will see FaZe Clan become the first publicly-traded esports organization in the world valued at $1 billion.

In the company’s official announcement, FaZe Clan CEO Lee Trink commented: 

“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. We believe FaZe Clan is becoming the voice of youth culture, a brand that sits at the nexus of content, gaming, entertainment and lifestyle in the digital-native world. 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.”

The announcement was followed by publishing FaZe Clan’s investor presentation, which revealed hints about the company’s future plans. This included the goal of boosting its annual revenue up to $651 million by 2025, with sponsorships serving as its biggest revenue stream. 

At the time, FaZe also hinted a planned improvement of fan monetization, acquisition of new companies and expansion to new regions. Titles such as League of Legends, Halo, Wild Rift, Apex Legends and Free Fire have been mentioned regarding possible future expansion, as well as new markets such as China, Brazil and the Middle East. 

Failed expectations

However, after submitting the filing to SEC earlier in April, the filing revealed that FaZe’s financial performance is expected to differ from the forecasts the companies revealed in October 2021. The company’s estimated performance has been reduced and the 2025 goal might also take a hit, while the changes were attributed to “current market trends”.  

These changes raised a wave of questions and discussions about whether this could ruin the org’s merger plans, however, the doubts have now been dispelled. 

What FaZe Clan going public means for the industry? 

The FaZe Clan SPAC merger is without doubt one of the most significant deals in esports industry and represents an opportunity to invest in the future growth of esports within media and entertainment. If the deal ultimately successfully closes, it will likely allow more esports orgs to become publicly-traded companies.

Header: FaZe Clan