FaZe Clan wins unicorn status in SPAC merger

Esports-focused brand FaZe Clan is going public via SPAC, making it the first unicorn in the space. The listing is irrefutable proof that esports is one of the most dominant industries in the larger gaming/sports market. And with $275 million in funds available, FaZe Clan may become an umbrella corporation for its roster’s more entrepreneurial ambitions.

Stock points
Now you can be a part of FaZe Clan. Well, you probably can’t play for the esports team… but the company is going public via a SPAC deal with B. Riley Principal 150 Merger Corp.

• The company will trade on the Nasdaq under the ticker “FAZE.”
• The deal will raise an estimated $291 million from the IPO.
• That values FaZe Clan at $1 billion — the first esports company to surpass that amount.

Current investors include Pitbull, Offset, Jimmy Iovine, and skateboarder Nyjah Huston who will own 68% of the company after its public debut. While the company has a yearly revenue of about $50 million, it’s still not profitable… but what startup is these days?

Brand plan
FaZe Clan was started by a group of popular Call of Duty players that eventually morphed into a formidable esports team. But esports revenue only accounts for about 20% of the company’s overall revenue. Instead, under the leadership of CEO Lee Trink, the company has shifted to:

• Brand partnerships (McDonald’s, Microsoft)
• Content creation (horror film Crimson)
• Merchandising (PUMA, Champion)

And of course, many on FaZe Clan’s 88-person roster are social media stars in their own right, reaching a combined 350 million people per month.