in

FaZe Clan reportedly for sale, talking with 2 esports organizations

FaZe Clan for sale

FaZe Clan is in its death throes and is likely for sale, with the company reportedly hearing out acquisition offers from other esports organizations.

Esports organization and influencer network FaZe Clan has been struggling for some time now. While esports financials are often murky due to teams and organizers being private companies backed by private equity, that’s not the case with FaZe. The divisive brand is publicly traded, and the entire industry had been able to see stock prices go from an introductory $9.83 per share in 2021 to hitting as low as $0.39 per share in 2023. That low stock price has had the company facing a de-listing from the NASDAQ for months, which has been accompanied by numerous executives leaving.

The writing has been on the wall regarding a potential collapse despite the organization having on-server success in major esports including Counter-Strike. Sports Business Journal, FaZe Clan is officially at a crossroads. The company is reportedly in talks with the parent companies of Luminosity Gaming and Complexity Gaming regarding a potential takeover.

Is FaZe Clan going out of business?

FaZe Clan is not yet going out of business, but the situation for the company is dire. According to reports, FaZe Clan is in talks with multiple suitors regarding a potential sale of the company. Those suitors are Enthusiast Gaming and GameSquare Holdings, Inc.

Both companies are backed by enterprises rooted in the traditional sports world. 

Enthusiast Gaming is chaired by Francesco Aquilini, owner of the NHL’s Vancouver Canucks. The company has a number of enterprises therein including the “Enthusiast” line of video game websites, Call of Duty League’s Seattle Surge, Overwatch League’s Vancouver Titans, and multi-game organization Luminosity Gaming. Dallas Cowboys owner Jerry Jones owns a significant portion of GameSquare Holdings, including multi-game esports organization Complexity Gaming and a talent agency.

Though FaZe is reportedly in talks with both regarding a possible takeover, it is unclear how far along these negotiations are or how much money may change hands. It’s also uncertain what would happen to any of the brands under these companies’ umbrellas should an acquisition be finalized. The FaZe branding could be dissolved, replace one of the established brands within its new parent company, become a separate sister brand, or something else entirely.

The only certainty would be that if Enthusiast absorbed FaZe, it would be required to sell off either the Seattle Surge or Atlanta FaZe Call of Duty League franchise. That could prove to be a bit messy, given the issues currently facing the Overwatch League.

Why is FaZe Clan being sold off?

FaZe Clan is in a dire financial position due to a significant chunk of its investment falling through in September 2022 and a subsequent mass stock sell-off. 

A regulatory filing on September 26, 2022 revealed that more than $70 million of a $100 million investment to fund the company’s operations wouldn’t come through due to a default. This triggered a fire sale among FaZe Clan’s shareholders as they sold off stock they owned or sought to convert stock they had for cash from the organization.

This sent FaZe’s stock price into a tailspin, going from $14.75 per share on September 26 to $4.96 on October 4. The problem worsened from there as executives and celebrity partners walked away. With much of its staff laid off, many key decision-makers gone, and stock prices still in a crater, FaZe Clan certainly looks to be in a dire position at the moment.

Author image

Written by Steven Rondina

Steven Rondina has been playing video games since he was a toddler and appreciates every genre out there. He has earned the platinum trophy in every Soulsborne game, is regularly Master Ball-ranked on the competitive Pokemon ladder, and has spent thousands of hours missing shots on Dust 2.

Captain Price Call of Duty

The Modern Warfare 3 logo leaked, it may hint at gameplay details

Rashid SF6

Capcom fixing Rashid bug, JP bug before Street Fighter 6 hits Evo