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Earlier today, FaZe Clan announced plans to become a publicly-traded company via a special purpose acquisition company (SPAC) deal with B. Riley Principal 150 Merger Corp.
The announced deal will allow the FaZe Clan to be traded on NASDAQ under the ticker “FAZE.” The company will raise around $291 million through the transaction and will be valued at around $1 billion once the deal closes.
Existing shareholders of the FaZe clan will end up owning around 68% of the newly formed company. The following article looks at all the information currently available on the announced SPAC deal.
FaZe Clan to become $1 billion public company after SPAC deal goes through with B. Riley Principal 150 Merger Corp.
FaZe Clan already boasts a star-studded group of investors, with musicians such as Pitbull, Swae Lee and Offset among the group. Additionally, multiple sports athletes, most notably Philadelphia 76ers’ Ben Simmons, Kyler Murray and Nyjah Huston are major shareholders in FaZe Clan.
Even popular music executive Jimmy Lovine has a major chunk of shares.
The SPAC (special purpose acquisition company) deal will help raise $291 million for the company which will bring the overall valuation to around $1 billion. The deal will be signed with B. Riley Principal 150 Merger Corp. which is backed by the B. Riley Financial, Inc. capital market company.
Regardless, the FaZe Clan will become the first esports/content creator organization that will have a billion-dollar valuation. In 2020, FaZe was ranked by Forbes as the 4th most valuable esports company with a valuation of around $305 million.
TSM was valued at over $410 million, making it the biggest esports organization in the world.
Regardless, FaZe CEO Lee Trink claimed that the company is still a few years away from being profitable:
There are so many things that I would never have thought in a million years that I would ever get an opportunity to do. Maybe at the end of a long list is something like this—to be CEO of a billion-dollar value company. It's humbling.
He further added:
We’re still in brand building mode. This is a world where the Harlem Globetrotters are actually more famous than the Lakers. It’s a world where the most entertaining player has a more lucrative career than the best player. This is not the finish line. This is a new starting line for us.”
Towards the end, he also claimed that nobody from the company was making money out of the deal, with all the resources expected to go towards mergers and acquisitions in the coming time.
