Cover-Credits:
FaZe Clan announced that it has entered a definitive merger with B. Riley Principal 150 Merger Corp (BRPM) as part of a special purpose acquisition company sponsored by an affiliate of B. Riley Financial. The merger will see the business being valued at approximately $1 billion USD. FaZe Clan revealed that it is currently positioned to become the only “digitally native, youth-focused lifestyle and media platforms publicly traded on a U.S. national exchange.”
FaZe Clan is moving beyond esports
FaZe Clan was originally launched in 2010 by Call of Duty players Eric "CLipZ" Rivera, Jeff "House Cat" Emann (now known as "Timid") and Ben "Resistance" Christensen to create content on YouTube. Following the trio’s success, the group branched out into esports and has grown into one of the most recognizable names amongst a large number of esports communities. The company is invested into Call of Duty, Counter-Strike: Global Offensive, PlayerUnknown's Battlegrounds, Tom Clancy's Rainbow Six Siege, FIFA, Valorant, Fortnite Battle Royale and Rocket League. It has also branched out into mobile esports titles like PUBG Mobile and FIFA Online.
The company is associated with not only esports and gaming content creators, but is also partnered with mainstream sports and entertainment personalities like American football player Kyler Murray, Australian basketball player Ben Simmons who plays in the NBA, and singer Armando Christian “Pitbull” Pérez, all of which have invested in the company.
FaZe Clan’s merger will be a SPAC Deal
The esports and content company expects sales of roughly $50 million this year and it is expected to grow in upcoming years. Lee Trink, Chief Executive Officer of FaZe Clan, said in the official announcement “We are thrilled to announce this important milestone of FaZe Clan’s plans to enter the public market. In our short history, we have evolved from a disruptive content generator to one of the world’s most decorated and successful esports franchises, and now into one of the younger generations’ most recognized and followed brands globally.”
The new merger between FaZe Clan and B. Riley is part of a special purpose acquisition company (SPAC) deal. The merger has led to the creation of “B. Riley Principal 150 Merger Corp (BRPM)” with the sole purpose of raising capital and merging both organizations. Having a SPAC deal allows FaZe Clan to make business projections as high as $1 Billion which would not be allowed in traditional initial public offerings (IPOs) as for all intents and purposes, FaZe Clan would be considered a startup.
