GameSquare Holdings (NASDAQ:GAME) is on course to acquire FaZe Holdings, the parent company of eSports team FaZe Clan, through an all-stock deal. The news comes as GameSquare, backed by major shareholder Jerry Jones, continues to expand its footprint in the eSports industry. The acquisition will include entities such as GCN, an eSports streaming service owned by GameSquare.
The merger follows a tough year for FaZe, which saw its shares decline by 90% after going public through a merger with a special-purpose acquisition entity. Despite this, FaZe is positioning itself as a significant gaming influencer platform.
As part of the terms of the merger, FaZe shareholders will exchange their holdings for GameSquare stock. The combined companies would have generated $138 million in revenue last year and anticipate over $18 million in run-rate savings from the deal.
Richard Bengtson is set to resume his role as CEO of FaZe Clan under GameSquare. To support the merger, Goff & Jones Lending, backed by Jerry Jones, plans a $10 million private placement stock purchase.
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