FaZe Clan fans will be able to buy shares.
FaZe Clan announced the biggest news in his history to his fans. The team of eSport US, which is among the best in the world, has made its official listing on the NASDAQ. It is the second most important stock exchange in the United States, behind the famous New York Stock Exchange.
This was made possible through a corporate merger with acquisition company B. Riley Principal, a financial investment firm. In a post on their site, FaZe Clan talked about this amazing new adventure and discussed the reasons for this rather surprising approach. FaZe Clan Director Lee Trink says:
“In our short history, we have grown from a disruptive content generator to one of the most decorated and successful esports franchises in the world, and now to one of the most recognized and trusted brands most followed by younger generations around the world. We believe FaZe Clan is emerging as the voice of youth culture, a brand that sits at the crossroads of content creation, gaming, entertainment and lifestyle in the digital world. This transaction will provide us with capital and access to public markets, which will help us accelerate the expansion of our cross-platform and monetization strategy.“.
For you, the fans.
Our biggest announcement to date: FaZe Clan is going to become a publicly traded company. https://t.co/HaHJtFIglW pic.twitter.com/YNYLpvVIRo
– FaZe Clan (@FaZeClan) October 25, 2021
The American esports ensemble, founded in 2010, will go public through a SPAC (Special Purpose Acquisition Company) and it is this maneuver that makes some people turn up their noses. According to the Wall Street Journal, a SPAC is a shell company that raises funds and begins trading on the stock exchange to merge with a private company and make it public. The private company then replaces the SPAC on the stock exchange. SPAC deals have exploded over the past year, in part because they allow startups like FaZe Clan to make business projections that aren’t allowed in traditional initial public offerings.
For some time the market has been wondering about these SPACs, underlining how they are “bubbles ready to burst” as this kind of agreement does not seem to be sustainable in the medium and long term. All that remains is to follow the development and performance of FaZe Clan on the stock exchange in the coming months.
Source: Kotaku
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