GameSquare has instituted a major shakeup in the gaming world. The esports firm has acquired FaZe Clan and plans to reinstall the beleaguered entertainment company’s original leadership team.
A press release from GameSquare describes the acquisition as an “arm’s length all-stock transaction” that will allow FaZe to continue operating as an independent entity. The two companies generated a combined revenue of $138 million in 2022, according to GameSquare. Post-acquisition, the gaming-oriented holding company plans to save over $18 million by eliminating redundant costs.
“The gaming community represents one of the largest and most engaged segments of the attention economy,” said GameSquare CEO Justin Kenna in a statement. “The acquisition of one of the biggest names in gaming serves as a perfect illustration of how we have built a powerful infrastructure with expansive scale that we can use to leverage the full spectrum of resources within the GameSquare ecosystem.”
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FaZe Clan still holds a significant amount of name recognition among gamers, but its final year as an independent entity was marred by financial instability and infighting. The org never recovered from a disastrous public offering that shrank its market cap to a fraction of its previous valuation.
As multiple rounds of layoffs hit the company, its longtime members argued that FaZe had erred by focusing too much on splashy signings and not enough on its original gaming focus. Days before the GameSquare acquisition, MrBeast joked that Brian ‘FaZe Rug’ Awadis should buy FaZe for $17 million.
GameSquare will need some time to untangle FaZe’s financial situation, but the firm has an immediate plan to resolve the org’s cultural clashes. Post-acquisition, FaZe will be led by several of its original members: Richard ‘FaZe Banks‘ Bengtson will take over as CEO, trick shot innovator Thomas ‘FaZe Temperrr‘ Oliveira will serve as President, and Yousef ‘FaZe Apex‘ Abdelfattah will occupy the COO role.
Bengtson will replace interim FaZe CEO Christoph Pachler, who described the acquisition as “a powerful combination.” Pachler took over the CEO after FaZe ousted Lee Trink, ending his five-year run in the top executive role.
In addition to FaZe, other properties under the GameSquare holding company include the Dallas Cowboys-affiliated company Complexity Gaming. Earlier this year, GameSquare leveled up its online gaming cred by giving a leadership position to popular streamer Ninja.
