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GameSquare spins off of FaZe Clan's media assets

May 16, 2024
Illustration of question mark emerging from a video game block punched by a gloved fist.

Illustration: Lindsey Bailey/Axios

GameSquare is spinning off the media assets for its eSports brand FaZe Clan and has closed $11 million in funding for a new company, FaZe Media.

Why it matters: This is the first big move for the popular eSports brand since GameSquare acquired it in March.

Zoom in: The spinoff includes all of FaZe Clan's non-eSports assets and will be led by Richard "FaZe Banks" Bengtson, one of the brand's original founders, GameSquare announced Thursday.

  • The $11 million investment is from DraftKings president Matt Kalish, who will become a board member for FaZe Media.
  • GameSquare will own 51% of the new company, with Kalish owning the remaining 49%. GameSquare CEO Justin Kenna will join Kalish on the board.
  • FaZe Media will focus on building back up its creator rosters and producing gaming-themed content. Additionally, it will look to increase its licensing and sponsorship business and develop products, merchandise and events.

The big picture: FaZe Clan became the poster child for the crashing eSports business last year.

  • The company went public via a SPAC merger in the summer of 2022, but its stock crashed after it reported a $53 million loss for that year.
  • FaZe Clan's then-leadership under CEO Lee Trink was criticized by some of the company's founders, including Bengtson. Trink was fired last fall as the company continued to burn through cash.
  • GameSquare relaunched Faze Clan last month after it went dark for months.
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