GameSquare announced that it has reached an agreement to purchase the esports company Faze Clan For 18.5 million dollars. The figure was not actually revealed, because the deal is based on an exchange of shares. However, considering the number of Faze Clan shares outstanding, potential shares from stock options, and GameSquare’s closing stock price yesterday, the total amount of the deal cannot exceed $18.5 million.
Remembering that just a year ago, when Faze Clan entered the stock market, it was valued at $725 million, this is a fire sale to try to save the company from bankruptcy.
According to the words of Justin Kennathe CEO of GameSquare, his company seems to be more interested in brand recognition than Faze Clan’s activities: “The acquisition of one of the biggest names in gaming perfectly represents how we have built a powerful infrastructure with scale extension that we can use to leverage the full spectrum of assets within the GameSquare ecosystem. We are also thrilled to welcome the founders of Faze Clan and their fans, one of the most active communities on the Internet.”
Faze Clan will operate as a subsidiary of GameSquare, while maintaining some independence. Richard “Faze Banks” Bengtson will be the CEO, Thomas “Faze Temperrr” Oliveira will be the president, and Yousef “Faze Apex” Abdelfattah will be the COO. Bengtson hopes that now the Faze Clan can return to the glories of the past, even if in reality they will have to deal with the crisis in the esports sector, which has worsened in the post-COVID era.
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