FaZe Clan’s OG founders to return as GameSquare purchases org with Banks as CEO

FaZe Clan’s founding members Banks, Temperrr and Apex are to return and lead the org, as GameSquare holdings has agreed an acquisition of the famed esports organization.

On October 20, GameSquare announced they had entered into a “definitive agreement” that will see the company acquire FaZe Clan in “an arm’s length all-stock transaction.”

FaZe Clan went public in 2022, but their short time on the Nasdaq was far from smooth sailing, eventually failing to maintain a share price above $1 – the requisite amount to remain listed on the exchange.

Crucially, GameSquare’s takeover will return founding members of FaZe to leadership positions, namely:

• Richard “FaZe Banks” Bengtson to be CEO of FaZe Clan, which will operate as a wholly owned subsidiary and independent division of GameSquare 
• Thomas “FaZe Temperrr” Oliveira to be President of FaZe Clan
• Yousef “FaZe Apex” Abdelfattah to be COO of FaZe Clan

“Joining forces with GameSquare creates greater scale and exciting opportunities in the emerging market for gaming and youth culture,” stated Christoph Pachler, Interim CEO of FaZe Clan. “The strength of the FaZe brand and GameSquare’s infrastructure are a powerful combination that will enable FaZe shareholders to benefit from the combined company’s long-term value creation potential.”

FaZe Clan’s longtime CEO Lee Trink was relieved of his position in September, which was reportedly a component of the deal going through.

The value of the FaZe Clan’s stock, if the deal were to close today, is around $16 million, per DigiDay.

GameSquare purchases FaZe Clan

GameSquare is also the owner of rival esports brand Complexity Gaming, as well as Code Red Esports, a talent agency.

“The gaming community represents one of the largest and most engaged segments of the attention economy,” stated Justin Kenna, CEO of GameSquare.

“The acquisition of one of the biggest names in gaming serves as a perfect illustration of how we have built a powerful infrastructure with expansive scale that we can use to leverage the full spectrum of resources within the GameSquare ecosystem. We are also thrilled to welcome back the founders of FaZe Clan and their fans, one of the most deeply engaged communities born on the internet.”

Speaking of the founders, one of the chief criticisms of FaZe’s direction in recent years was the lack of involvement from the original founding members and previous owners.

Banks will return back in a leadership position, as CEO. “I’m confident that with Tommy, Apex and me back in charge of the brand, FaZe Clan will get back to where it was in its peak years,”

“We grew up on the internet and understand this brand better than anyone ever could. We are grateful to have found a partner in GameSquare who sees that value in us and can help execute our vision. We’re going to produce first, talk later.”

In the announcement, GameSquare states that management expects to save around $18 million of current expenditure, through “reduced corporate costs and focus on driving efficiencies across the organization.”

It’s also boasted that, combined, FaZe Clan and GameSquare generated annual revenue of approximately $138 million in 2022.

The transaction is expected to close in the fourth quarter of 2023, as while the deal as been approved by the boards of both FaZe Clan and GameSquare, it is still subject to shareholder approval.

Current GameSquare shareholders will own approximately 55% of the new merged company, with FaZe Clan shareholders owning approximately 45%.