FaZe Clan, a renowned esports team, has sold its business to GameSquare, an esports company backed by Jerry Jones, the owner of the American football team Dallas Cowboys, for a reported price of $17 million. Founded in 2010, FaZe Clan originally started as a Call of Duty gaming team and quickly expanded into other games. The highlight of FaZe Clan’s journey was its listing on the Nasdaq market in 2022 through a SPAC merger, valuing the company at a whopping $725 million.
However, after that milestone, FaZe Clan, along with other esports teams, experienced a downward trend. The company incurred losses, leading to multiple rounds of layoffs, including the recent departure of CEO Lee Trink last month.
As a solution, FaZe Clan decided to sell its business to GameSquare in a stock exchange deal. Under this agreement, FaZe Clan’s shares will account for 45% of the new company, which is valued at $35.7 million.
GameSquare announced that the combined revenue of both companies is $138 million per year. This merger will transform GameSquare into a comprehensive esports platform, encompassing media, agency services, creative content, and technology.
TLDR: FaZe Clan, a renowned esports team, has sold its business to GameSquare for $17 million. Despite experiencing difficulties such as losses and layoffs, this acquisition will enable GameSquare to become an all-encompassing esports platform with an annual revenue of $138 million.