Reports: FaZe Clan recieve acquisition offers from Luminosity and Complexity

Popular NASDAQ-listed gaming companies GameSquare and Enthusiast Gaming have reportedly made acquisition offers to FaZe Clan.

One of the most popular esports and lifestyle company FaZe Clan has reportedly received buyout propositions from the parent firms of Complexity and Luminosity, According to the reports from Sports Business Journal, a merger with either business would likely involve “equity swap and cash infusion.

Complexity, the popular esports organization that competes in titles including CS: GO, Rocket League, Apex Legends, Fortnite, and Valorant, is owned by GameSquare. Complexity and FaZe have lineups for the same esports titles, which could lead to conflicts in their individual esports portfolios.

While Luminosity Gaming is owned by Enthusiast Gaming, a Canadian gaming company that also owns the Vancouver Titans of Overwatch League and Seattle Surge of Call of Duty League.FaZe Clan also had a presence in the CDL thanks to a partnership with Atlanta Esports Ventures, the organization that co-owns and manages the Atlanta FaZe team.

The Canadian company also operates several gaming websites and the blockchain game EV.IO. Also, the Canadian corporation runs the Enthusiast Gaming Live Expo (EGLX), which bills itself as Canada’s largest video game convention and boasts a peak attendance of 30,000.

Is FaZe Clan’s collapse imminent?

The reports come shortly after FaZe disclosed that its cash assets would only be sufficient to support business operations through November 2023. Following a $725 million SPAC merger, one of the largest esports organizations in the world, FaZe, went public on the Nasdaq exchange for about $13 per share last year in July. After several investors decided to redeem their shares throughout the merger process, the stock skyrocketed. The stock has gradually started trending lower after the initial rise, and earlier this year it dropped below the $1 mark.

FaZe Clan is officially a publicly traded company. $FAZE pic.twitter.com/QjrOhJ9ffx

— FaZe Clan (@FaZeClan) July 20, 2022

 

After the company’s stock price remained below the necessary $1 barrier for more than 30, FaZe received a delisting notice from NASDAQ. The Sports Business Journal then revealed that FaZe was thinking about restructuring to take the business private. Moreover, during the 2023 Annual Meeting of Stockholders, FaZe shareholders approved a reverse stock split for the outstanding shares of common stock. 

The board of directors recommended a reverse stock split at a 20:1 or 30:1 ratio, which would allow FaZe Clan to once again be in compliance with the $1.00 minimum bid limit, according to the Esports Advocate. At the stock’s current market price, such a consolidation of FaZe shares would cause per-share prices to soar to about $11 or $17, enabling FaZe to return to compliance and avoid delisting.

Header: FaZe Clan