The FaZe Clan team details the terms and reasons for its IPO, an approach that surprises some fans.
This October 25, FaZe Clan announced the biggest news in its history to its fans. The US esports team, which is among the best in the world, officially went public on the NASDAQ (understand the National Association of Securities Dealers Automated Quotations). It is the second most important stock exchange in the United States, behind the famous New York Stock Exchange.
For you, the fans.
Our biggest announcement to date: FaZe Clan is going to become a publicly traded company. https://t.co/HaHJtFIglW
– FaZe Clan (@FaZeClan)
FaZe Clan explains itself
This was made possible through a business merger with special purpose acquisition company B. Riley Principal, a financial investment firm. In a post on their site, FaZe Clan spoke about this remarkable IPO and discussed the reasons for this rather surprising approach. FaZe Clan Director Lee Trink says:
” Over the course of our brief history, we’ve grown from a disruptive content generator to one of the most decorated and successful esports franchises in the world, and now to one of the most recognized and trusted brands. followed by younger generations around the world.
We believe FaZe Clan is emerging as the voice of youth culture, a brand that sits at the crossroads of content creation, games, entertainment and lifestyle in the digital world. This transaction will provide us with capital and access to public markets, which will help us accelerate the expansion of our multiplatform and monetization strategy. “.
This is called a grand entrance
As you can see, FaZe Clan is positioning itself as a brand for young people and intends to promote this philosophy more with its IPO. For the occasion, B. Riley Principal is expected to receive financial compensation of $ 291 million to finance the growth of the company ” in content, games, entertainment, consumer products and metaverse “.
For its IPO as a merged company, FaZe Clan hopes to get a valuation of nearly $ 1 billion, including $ 275 million in cash on its balance sheet. As for FaZe Clan shareholders, they own approximately 68% of the stake and must provide 100% of the stake for the benefit of the merged company.
For fans, and budding economists, that means they can now buy shares in Faze Holdings Inc., something some gamers are planning to do if the comments below the Twitter post are to be believed. However, some others mention the fact that most fans of the esports team are not of legal age to buy shares, which would be like shooting yourself in the foot.