On Monday, it was announced by FaZe Clan that the esports/gaming powerhouse will be a publicly traded company due to a merger with B. Riley Principal 150 Merger Corp under (NASDAQ: BRPM), a special purpose acquisition company sponsored by an affiliate of B. Riley Financial, Inc.
The Business Transaction
The proposed business transaction includes an equity value of approximately $1 billion for the combined company. This, in turn, is covering nearly $275 million of cash, assuming that there are no redemptions at all during the process.
The decision was made in order to help the gaming organization expand and diversify its native youth lifestyle and digital platform as it is one of the few of its kind to be a public trade in the U.S. national exchange.
Management from both Companies on Merger and Business Transaction
Lee Trink, Chief Executive Officer of FaZe Clan, said in a statement regarding the announcement that “this transaction will provide us capital and access to the public markets, which will help us accelerate the expansion of our multi-platform and monetization strategy,” said Trink.
Trink also stated his gratitude towards the fans of FaZe Clan for helping them get to this point. “We are so grateful to the millions of loyal fans who have helped us take FaZe Clan to the next level, without whom this would not have been possible.”
Dan Shribman, Chief Investment Officer at B. Riley Financial, and CEO and CFO of BRPM, also stated how delighted he is to have a business combination with FaZe Clan stating that the “The business combination with FaZe Clan represents a tremendous opportunity to invest in the future of media and entertainment.”
He also wanted to point out why FaZe Clan was such a good investment for his company. “With unmatched social media reach and Gen Z engagement, and the opportunity to meaningfully expand its global multi-platform presence across content, gaming, entertainment, consumer products, and the metaverse, we believe FaZe Clan is a compelling investment with the potential to create significant value.”
What this Means for FaZe Clan
The gaming organization can now expand its reach and help their fans stay engaged with their favorite content creators and teams in FaZe Clan. Along with this, they can also be the ones to lead the esports community into the next step of its increasing growth.
The esports industry has grown exponentially. Now, with another gaming organization set to be a public trad on the national exchange, the popularity of gaming, as a whole, could see a dramatic increase.
Something that to also point out the implications of what this could mean for other gaming organizations. Now, other investors might think twice about not investing in a gaming organization and take them a little more seriously.
With more esports and gaming organizations on the rise as well, who knows what this could mean for the industry. Can you imagine if OpTic or 100 Thieves join the likes of FaZe? What could that mean for the growth of the industry?
Featured Image Courtesy of FaZe Clan
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