FaZe Clan plans to go public

FaZe Clan, an esports lifestyle and entertainment organization, today announced that it is going public with a SPAC in a deal that values the company at $1 billion. The company will merge with B. Riley Principle 150 Merger Corp (BRPM) to become "FaZe Holdings Inc." FaZe Clan’s ticker symbol will be "FAZE" on the Nasdaq once the transaction closes. FaZe Clan announced plans to use the money it gets in the deal to fund its “global multi-platform growth strategy spanning content, gaming, entertainment and consumer products, including potential acquisitions.” The plan was unveiled at a time when gaming and esports have solidified themselves as areas brands want to be a part of in order to reach Gen Z and millennial audiences. (FaZe Clan has said it has more than 350 million followers across all of its social media channels.) That drive to connect with younger audiences has resulted in FaZe partnering with brands like McDonald’s, Doritos, and DC Comics. Its players were the first esports members to be featured on the cover of Sports Illustrated, in July, and most recently were seen on the red carpet of the Dune premier in London doing a live Twitch stream. “We are thrilled to announce this important milestone of FaZe Clan’s plans to enter the public market,” Lee Trink, CEO of FaZe Clan, said in a statement. “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.” FaZe won’t be the first esports group to go public. Toronto-based Enthusiast Gaming, the parent company of esports organization Luminosity Gaming, went public on the Nasdaq in April. A SPAC is a Special Purpose Acquisition Company, sometimes called a “blank check company.” Its purpose is to raise money by using an initial public offering to then pay out investors. Going public via SPAC saves companies time and money because a traditional IPO process can take up to nine months. With a SPAC, a company can go public in just a few months. This form of going public became popular last year as investors with pent-up demand looked for quick-turn investments in a volatile pandemic market. Virgin Galactic, DraftKings, and SoFi all went public using SPACs. FaZe is expected to receive about $173 million in cash from BRPM, as well as $118 million in PIPE (Private Investment in Public Equity), which allows buying of shares of publicly traded stock at a price below the market value.

FaZe Clan plans to go public

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