FaZe Clan stock will trade on the Nasdaq after SPAC deal: Read CEO Lee Trink’s memo to staff

25 Oct FaZe Clan stock will trade on the Nasdaq after SPAC deal: Read CEO Lee Trink’s memo to staff

FaZe Clan, the gaming and entertainment content platform, has announced its plans to go public through a proposed SPAC deal that gives the company a $1 billion valuation. The deal is with B. Riley Principal 150 Merger Corp., a special purpose acquisition company backed by B. Riley Financial Inc.

In an internal company memo this morning, FaZe Clan CEO Lee Trink said that the deal—expected to take FaZe Clan public in the first quarter of 2022—would bring the “resources to further accelerate our growth, bringing our biggest ideas to life.” The combined company’s common stock is expected to be listed on the Nasdaq under the new ticker symbol “FAZE.”

“This is a natural next step in the growth of FaZe Clan,” writes Trink. “There is no gaming organization, entertainment company or media brand quite like FaZe Clan. We have a tremendous opportunity ahead of us. FaZe is evolving from a digital publisher into an intellectual property engine, which we believe will unlock new ways to diversify our revenue. We’ll look at new growth opportunities across the creator economy and emerging technologies such as digital goods and the metaverse . . . As a public company, we’ll continue to innovate and disrupt while always staying authentic to our roots. It’s critical that we stay true to who we are, and always remember that everything we do is for the FaZe Clan community and fans. We could never have arrived at this day without them and their support.”

FaZe Clan started in 2010 as a group of friends playing Call of Duty, and has since become an e-sports and entertainment powerhouse, balancing a content production studio; talent management, a direct-to-consumer e-commerce business; and a sales team negotiating brand deals.

Its investors include NBA stars Ben Simmons and Jamal Murray, music industry manager and exec Guy Oseary, and musicians like Offset and Pitbull. It also has partnerships with major brands like McDonald’s and Xbox. In September, the brand announced a partnership with DC Comics for a limited-edition Batman comic book featuring superhero versions of FaZe Clan members, and of course a line of merchandise for the collab, like esports jerseys, apparel, and computer accessories.

Back in July, FaZe Clan suspended three members and permanently removed another for their involvement in a cryptocurrency scheme. The company boasts a social media following of more than 350 million, and says 80% of its audience is between the ages of 13 and 34.

Source: Fast Company