Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Alejandro86 for the clue delivery! CTOnews.com, October 21 (Xinhua)-- FaZe Clan, a North American e-sports club once valued at $1 billion, is being acquired by Texas-based e-sports GameSquare in an all-stock deal after widening losses hit its share price, Reuters reported. Dallas Cowboys, the NFL team, is expected to complete the acquisition in the fourth quarter.

The two companies did not disclose financial details of the deal in a joint statement on Friday, but Bloomberg reported that the deal was worth about $17 million (CTOnews.com Note: currently about 124 million yuan). GameSquare expects the acquisition to save more than $18 million. The all-share deal combines FaZe and GameSquare into a single company, and FaZe shares account for about 45 per cent of the company's ownership.

It is understood that FaZe Clan went public through a blank check in 2022, but its valuation lost a lot in more than a year. As of the last close, the company had a market capitalization of just $14 million. Faze's losses widened from $36 million a year ago to $168 million in 2022 and ousted Lee Trink, its former chief executive, in September.

Although FaZe has many problems, it still has considerable value in the field of e-sports, such as a large number of fans. According to GEEIQ, the data platform, the total number of fans on FaZe social channels is 260 million.

"for me, GameSquare is the only truly globally recognized brand in the gaming industry," said Justin Kenna, chief executive of FaZe Clan.

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