FaZe Clan Going Public on The NASDAQ, Surprises with $1 Billion Valuation
FaZe Clan going public isn’t what you think when you hear the “bad boys of esports”. They have announced that it will soon be completing a merger with private company B. Riley Principal 150 Merger Corp (BRPM). Skyrocketing its implied value to $1 Billion, the first esports company worth more than a billion dollars.
As part of the deal, FaZe looks to raise $291 million in order to grow the “gaming, lifestyle, and media platform”. Most investors expect to see Faze Clan going public quickly thanks to a special deal the esports org has struck.
The deal is a special purpose acquisition that puts FaZe Clan on the fast track to going public. This will help avoid the slower approach that would require the group to offer an initial public offering. The organization expects the Faze Clan Nasdaq symbol to be “FAZE”. Due to no initial public offering, there is no indication yet on when FaZe Clan stock can be purchased.
FaZe Clan is most known for fielding teams in Call of Duty (CDL Champs in 2021), Counter-Strike: Global Offensive, Fortnite, PlayerUnknown’s Battlegrounds, and Valorant. But esports is not the main powerhouse of the group. Millions of active followers make up their large fan base and the content creation giant has plans to open its own studio. This would be in partnership with a producer who helped bring Netflix’s smash show ’13 Reasons Why’ to life.
As one of the most successful esports franchises of all time, Faze Clan boasts a robust non-gaming figure roster. Including celebrities like NBA ‘bad boy’ Ben Simmons, Offset from the rap group Migos, and retired legends like Meyers Leonard.
Going public was a forgone conclusion when it came to the future of Faze Clan. The past few years have seen the organization take stringent actions in order to clean up its public perception. Between making the cover of Sports Illustrated to teaming up with McDonald’s as the face of esports for a youth outreach program, the Faze Clan of today is a shadow of its former controversial self.
FaZe was known for its outrageous and often provocative inclusion in content creator houses and the drama that followed them. Add onto that a large-scale scandal when multiple members of the Faze Clan organization were found to have promoted a new cryptocurrency named Save The Kids.
Members surrounding the promotion of the cryptocurrency claim it does exactly what the name suggests; raise money for charities centered around helping children. However, it was eventually surfaced that the members were engaging in a “pump and dump” scheme that would see the holders and creators of the new cryptocurrency inflate the price of the coin only to quickly sell and bail on the cryptocurrency as a whole before the price plummeted by the sudden exit of the members fleecing fans for cash.
Regardless of past issues that the esports organization has faced, the future is looking pretty bright for FaZe. In the press release FaZe released announcing its public listing, they discussed their path forward for the company to monetize their audience:
FaZe Clan plans to further diversify its revenue streams with user monetization, expansion of its global footprint, and investment in new growth opportunities across the creator economy and emerging technologies in addition to a robust acquisition strategy that will only strengthen the Company’s flywheel.
The company has shown that they have a very young audience that is massive and still growing. And they’re going to continue to want to engage with the content creators and products that the brand has helped build. Products like gaming peripherals and clothing make up only part of their attempts to branch out into non-traditional branding opportunities.
A crossover comic book between Faze and Batman (officially approved by DC) is one of the cooler items available. Not to mention that the Faze line of branded G-FUEL are some of the most popular ones up for sale. Don’t forget the digital content that the brand has used to solidify a fanbase able to compete in non-gaming markets on name alone.
The Real Value
So what is Faze Clan worth? As of yet, there are no official statements of value. However, a recent estimate by Forbes estimates Faze Clan’s value at $305 million. This is a far cry from the expected value of a billion dollars by the time the org goes public.
The merger with B. Riley Principal 150 Merger Corp (BRPM) looks to complete this important milestone sometime in the first quarter of 2022.
“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 CEO Lee Trink said. “This transaction will provide us capital and access to the public markets, which will help us accelerate the expansion of our multi-platform and monetization strategy.”
Feature Photo by Luke Walker/Getty Images