FaZe Clan Going Public with a $1 Billion SPAC Deal.
FaZe Clan, massively popular among youth, especially gamers join hands with a special purpose acquisition company to file IPO with an estimated value of $1 billion. FaZe Clan is popular among millennials and Gen Z and is a leading online gaming company.
The company is involved in esports, digital content, and merchandise business. According to the company’s website, it has a reach of over 350 million people via its social media channels. The company is partners with McDonalds Corp. and Totino’s Pizza Rolls.
It is also supported and backed by several entertainments and sports celebs, notably Pitbull.
FaZe Clan has decided to merge with SPAC B. Riley Principal 150 Merger Corp. This will help FaZe Clan to raise huge sums of money, and expand its reach and brand awareness. The CEO of FaZe Clan, Lee Trink, said in an interview, “The big opportunity is our direct relationship with the massive audience we have.”
He further added, “It’s a very large, very vibrant community that we’re deeply rooted in.”
The deal has let FaZe-Clan raise approximately $120 million through PIPE (private investment in public equity). The deal can also increase FaZeClan’s cash proceeds as SPAC B. has $170 million in cash.
Moreover, the projected sales of $50 million are expected to increase rapidly in the coming years for FaZe-Clan.
SPAC mergers have become popular lately and several fast-growing online platforms have resorted to SPAC. SPAC lets emerging businesses raise huge amounts of capital as well as increase brand awareness.
Some of the names that have followed the SPAC plan to go public are DraftKings Inc., Skillz Inc., and BuzzFeed. Recently, Donald Trump’s new social media venture also to go public by combining with SPAC Digital World Acquisition Corp.