FaZe Clan goes public via $725 million SPAC
FaZe Clan, one of the largest global gaming companies, began trading publicly on the Nasdaq Wednesday, following its merger Tuesday with a blank check company called B.Riley Principal 150 Merger Corp.
Why it matters: It's one of the first gaming and entertainment companies targeted specifically toward Gen-Z consumers to go public.
Be smart: The listing is especially notable given the current market downturn.
- Many SPACs have been called off as companies reassess how forgiving the public market will be for upstart brands.
Details: The deal valued the company at $725 million, down slightly from initial third-party valuations that priced the combined company at about $1 billion.
- The company will trade under the moniker "FAZE."
- The company brought in $53 million in revenue in 2021, up from $38 million in revenue in 2020.
- Most of the company's revenues come from sponsorships, content production, consumer products and its esports competitions.
Between the lines: Earlier this year, FaZe Clan announced a slew of new board members and a new president, with strategic focuses on media and entertainment, as the company prepares to shift more of its business toward entertainment deals and lifestyle content around gaming and youth culture.
What to watch: The company plans to use the money raised from its IPO to invest more heavily in web3 tools and experiences to better connect audiences to its network of lifestyle and gaming creators.
Go deeper: SPAC mania isn't over