GameSquare, one of the biggest esports talent organizations and the parent company of esports team Complexity, recently make a move to acquire FaZe Clan.
The news has sent shockwaves through the gaming community, underlining FaZe Clan’s enduring influence and global reach.
FaZe Clan’s Evolution: Flying Start
Faze was founded in 2010 by a group of young gaming enthusiasts and quickly became a global sensation.
In 2011 they became the first international esports team as they grouped for Call Of Duty.
They rose to fame with a staggering 10 million subscribers on YouTube and became the first YouTube gaming Creator House in 2016.
Their total followers reached 100 million on all social media platforms in 2016.
In 2017, they introduced their official Counter-Strike team in the International CS:GO Championship.
Stock Market Downfall
FaZe Clan made headlines in July 2022 upon becoming a listed company (which means listed on the share market so that anyone buys its shares).
They proceeded in the share market as the public at a $725MM valuation in July 2022.
Initially, things were going smoothly, and their valuation crossed the billion-dollar mark, catapulting it to the forefront of the gaming and esports scene.
But the scene quickly changed for Faze, poor performance of the team and bad management showcased its effects on share value as it dropped from $24 (Highest) to 18 US cents (Lowest), almost 90% drop in valuation, becoming a major reason for acquisition by GameSquare.
Imagine those who invest 100 in shares and get only 10 in return, will they ever trust that company, the same happened with Faze Clan.
GameSqaure’s Offer
Gamesqaure the world’s leading content, media, and entertainment company shifted its focus on gaming and esports.
As per some rumors, they have offered Faze over $16 million probably just above their current valuation.
With this Gamesqare now become a big esports parent company as they have two big CS2 esports companies, Complexity, and Faze Clan, under the umbrella.
Leadership Restructuring: OG founders return
As the tides of ownership shift, a significant reconfiguration of leadership is on the horizon.
The founding members of FaZe Clan are going to make their return to steer the brand forward, ensuring its core identity remains resolute and intact.
The baton of chief executive officer (CEO) will be passed to Richard ‘FaZe Banks’ Bengston, while Thomas ‘FaZe Temperrr’ Oliveira and Yousef ‘FaZe Apex’ will assume the roles of President and Chief Operating Officer (COO), respectively.
- Temperrr as President
- Banks to be CEO of FaZe Clan
- Apex as COO
Founders are focused on refreshing the FaZe Clan brand, re-engaging with its core fanbase
Currently, Christoph Pachler is the CEO of FaZe Clan and will remain there until the merger is complete.
Integration with New Parent Company
Beyond a simple acquisition, the nature of this monumental move lies in the seamless integration of FaZe Clan into the vast repertoire of GameSquare’s offerings.
With a diverse portfolio encompassing entities like Code Red, Complexity Gaming, Stream Hatchet, and Fourth Frame Studios, GameSqaure has emerged as a dominant force in the global landscape of esports, gaming, and youth culture.
A Road Ahead…..
While the merger signals a promising course for the newly united entity, it also presents a myriad of challenges.
Addressing FaZe Clan’s recent financial hardships will undoubtedly be a crucial focal point for GameSquare.
The watchful eyes of the esports community will closely monitor the strategies implemented by GameSquare, emphasizing the need for effective optimization of FaZe Clan’s operations to ensure sustainable profitability without compromising the brand’s fundamental ethos.
Stay tuned with Gaming Foodle for further updates.
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