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FRISCO, TX - GameSquare Holdings, Inc. (NASDAQ:GAME), currently trading near its 52-week low at $0.62 compared to its high of $2.25, has announced strategic shifts, including the divestiture of its 25.5% stake in FaZe Media to Gigamoon Media and FaZe’s founders, effective April 1, 2025. This move aligns with GameSquare’s goals to streamline operations and drive toward profitability. According to InvestingPro data, the company’s current market capitalization stands at $20.23 million.
The company, which continues to wholly own the profitable FaZe Esports, is also expanding its gaming and esports experiences business in the U.S. To support this growth, GameSquare has secured a $2 million credit facility from the Jones Family, with a 10% annual interest rate and no prepayment penalties. This financing comes at a crucial time, as InvestingPro analysis shows the company operating with a current ratio of 0.72, indicating potential liquidity challenges.
GameSquare’s experiences division focuses on creating immersive events and digital activations, partnering with brands and gaming communities across the U.S. The company is also launching a collegiate esports initiative to foster community engagement and build a pipeline for future talent.
The divestiture of FaZe Media, valued at $39.2 million, is seen as a win-win, allowing the founders to regain creative control while GameSquare retains the successful FaZe Esports. CEO Justin Kenna stated, "I am proud of what we have accomplished by rebooting the brand, reducing operating costs, and positioning FaZe Media for success as a standalone, creator-led business."
GameSquare will provide additional details on the FaZe Media divestiture during its Q4 2024 earnings call scheduled for April 16, 2025. The company’s full-year financial results will be released after the close of business on April 15, 2025, with a webcasted earnings call to follow.
This news comes as GameSquare aims to optimize its business model and reach profitability in the upcoming quarters. The company’s mission remains focused on connecting brands with younger audiences through gaming and creator entertainment. While the company faces current challenges with a gross profit margin of 19.92%, analysts maintain optimistic price targets ranging from $3 to $4. For deeper insights into GameSquare’s financial health and growth potential, including 12+ additional ProTips and comprehensive valuation metrics, visit InvestingPro.
The information in this article is based on a press release statement from GameSquare Holdings, Inc.
In other recent news, GameSquare Holdings, Inc. held its annual meeting, successfully electing eight directors to the board and approving key proposals, including amendments to the stock incentive plan and the ratification of Kreston GTA as the independent auditor for the fiscal year ending December 31, 2024. Shareholders also approved the compensation of the company’s named executive officers and decided on the frequency of future advisory votes on executive compensation. Additionally, GameSquare received an extension from Nasdaq to address compliance issues related to the timing of its annual shareholder meeting, with the company scheduling the meeting for March 12, 2025, to meet listing requirements. In another development, GameSquare settled its outstanding convertible note and terminated its agreement with Yorkville Advisors Global L.P., issuing a zero-coupon, 60-day promissory note with a prepayment penalty of $780,000. This strategic decision is aimed at streamlining the company’s capital structure and eliminating potential stock dilution. GameSquare’s CEO, Justin Kenna, emphasized the support from investors as a positive sign for the company’s long-term growth. These recent developments reflect GameSquare’s efforts to solidify its governance structure and financial standing.
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