GameSquare Completes Faze Clan Acquisition

GameSquare completes merger with FaZe Clan

As of the close of trading on March 8, FaZe common stock (NASDAQ:FAZE) and FaZe warrants (NASDAQ:FAZEW) will cease trading.

“On behalf of everyone at GameSquare and FaZe, we are thrilled to announce the successful culmination of our merger, marking a significant milestone in our journey to revolutionize the gaming and media landscape,” GameSquare CEO Justin Kenna said in a release. “This strategic alliance strengthens our position across global industries, amplifies our ability to connect brands with elusive and influential youth audiences, and unlocks even more opportunities to support our partners with cutting-edge technology. Together, we will seek to redefine the future of esports and gaming by leveraging our combined expertise to pursue opportunities for growth and innovation. Our commitment remains unwavering as we aim to lead the way in shaping the ever-evolving intersection of gaming, media, and brand engagement.”

“We are excited to complete the merger with GameSquare as together we have created a leading organization focused on gaming and youth culture,” added Director of FaZe Clan Paul Hamilton. “On behalf of everyone at FaZe we are excited by the opportunities we are pursuing together to create value for our shareholders.”

GameSquare also noted in its announcement that FaZe spent much of 2023 focusing on “reducing costs and driving efficiencies,” and due to those efforts it eliminated approximately $31M USD of annualized operating costs in Q3 2023, compared to the same period in 2022. FaZe expects to remove approximately $15M of additional annualized costs during 2024.

FaZe Clan currently fields professional teams in Counter-Strike 2, PUBG, PUBG Mobile, Rainbow Six Siege, Call of Duty League (Atlanta FaZe – through a deal with Atlanta Esports Ventures), Fortnite, Rocket League, Valorant and Valorant Game Changers, Apex Legends, Halo, and R1 Racing, among others. 

Due to concerns over conflicts of interest that might arise if both FaZe and Complexity remained under the same company (because both organizations compete in many of the same games such as Counter-Strike 2), GameSquare recently divested the Texas-based esports organization to its founder and CEO Jason Lake for roughly  $10.36M.

In addition to picking up FaZe esports rosters and content creator talent, the combined company is now home to some of the biggest names in gaming culture including Ninja, TimTheTatman, Max Holloway, Trevon Diggs, FaZe Banks, FaZe Temperrr, FaZe Apex, FaZe Nickmercs, FaZe Rug, FaZe Swagg and many others. It also brings FaZe brand partners into the fold including Porsche, Nike, Jack in the Box, Xfinity, Miller Lite, GHOST, and more.

It is unclear how FaZe will fit into GameSquare, though most agree that it is one of the most recognized brands in esports, and that brand isn’t going anywhere post-merger, despite its past controversies and serious financial struggles—particularly after it decided to go public on July 20, 2022, through a $725M SPAC with the help of B. Riley Associates. 

In 2023—long before both companies even considered merging—sources familiar with the situation at the time told The Esports Advocate that if GameSquare did buy FaZe it would focus on leveraging the company as a marquee brand within its ecosystem.