Oct 25, 2021 - Technology

Gaming giant FaZe Clan to go public via SPAC

assal Rushan and Amine Boughanmi of FaZe Clan team compete during the FIFA eClub World Cup 2020

Members of the FaZe Clan team compete during the FIFA eClub World Cup 2020. Photo: Tullio Puglia - FIFA/FIFA via Getty Images

FaZe Clan, a gaming and lifestyle consortium, announced Monday it will enter the public markets via a merger with a special purpose acquisition company (SPAC) that values the combined company at about $1 billion.

Driving the news: FaZe Clan, founded in 2010, touts itself as a "voice of youth culture," with a hand in several industries that target Millennials and Gen Z, such as influencer marketing and e-sports.

  • Be smart: A SPAC is a shell company that raises money from the public markets for the purpose of acquiring a private company.

Our thought bubble, via Axios Gaming author Stephen Totilo: FaZe is among the most boisterous presences in gaming culture, and they've been doing their best to grab attention with deals like these or even their recent Sports Illustrated cover.

  • The headlines keep emphasizing them as an esports group, but their bigger appeal is as a lifestyle brand — as a crew of gamers people like to watch play games and cheer on.

What they're saying: "We are thrilled to announce this important milestone of FaZe Clan's plans to enter the public market," Faze Clan CEO Lee Trink said in a statement.

  • "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," he added.

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