FaZe Clan SPAC deal: How to invest in this digital content platform?

Highlights

  • FaZe Clan has emerged as one of the leading esports platforms in the world.
  • Over the years, FaZe Clan has secured funding from several sources, including singer Pitbull.
  • FaZe Clan is expected to trade on the Nasdaq Stock Market and under the 'FAZE' stock symbol. 

Professional esports and entertainment organization FaZe Clan announced on Monday, October 25, that it is going public through a merger with a blank-check company. The combined entity could value US$ 1 billion once the deal is completed and become the first esports company to achieve this feat.  


Established in 2010, FaZe Clan has emerged as one of the leading esports platforms in the world, and it provides digital content, online gaming, esports and sports merchandise services to its users worldwide. 


The company majorly focuses on Gen Z customers and millennials and claims to have more than 351 million users across platforms. Notably, the company onboarded LeBron Raymone "Bronny" James Jr., son of the famous American basketball player LeBron James. 

 

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Bronny is a high-school basketball player and is believed to be a video game enthusiast. He has joined the FaZe team as a member and could stream games for the esports company in future. 


All you need to know about FaZe Clan 


Over the years, FaZe Clan has secured funding from several sources, including singer Pitbull, e-commerce platform Ntwrk and famous media executive Jimmy Lovine. In addition, athletes Ben Simmons and Kyler Murray are content creators at FaZe Clan. 


The esports company also has ties with McDonald's and Verizon Communications to attract young people and increase the userbase. 


FaZe Clan has plans to merge with a special purpose acquisition company called B. Riley Principal 150 Merger Corp. The merger will likely provide US$ 291 million to FaZe and gross proceeds worth US$ 173 million from the SPAC IPO if there are no redemptions. 

FaZe Clan to go public through a SPAC merger.

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FaZe Clan is expected to trade on the Nasdaq Stock Market and under the 'FAZE' stock symbol. 


People looking to invest in the FaZe Clan stock will likely have to wait until the common stock starts trading in the stock market. 


If the IPO happens, investors can invest in FaZe Clan stock just like they buy and sell regular stocks in an equities market. 

Bottom line


The growing professionalization in the esports industry has changed the face of the industry. As a result, video games have emerged as the primary source of income for many individuals worldwide. 

 

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According to a GrandViewResearch report, the size of the global esports industry was US$ 1.1 billion in 2019, and it is expected to grow at a compound annual growth rate (CAGR) of 24.4 per cent between 2020 to 2027. 

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