Gaming Content Creation Group FaZe Clan to Go Public With $1 Billion Valuation

Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Gaming Content Creation Group FaZe Clan to Go Public With $1 Billion Valuation

FaZe Clan, the Los Angeles-based esports team owner and collective of gaming influencers, will go public through a merger with a special-purpose acquisition company valued at $1 billion, as it expands its gaming brand and eyes original content for streaming services like Netflix.


Launched in 2010, FaZe built a business creating esports teams (it now has 30 esports championships under its belt) and went to develop some of the most prominent gaming influencers in the U.S. The company courts younger audiences through brand partnerships with Gfuel, McDonald's, Totino's Pizza Rolls and hot names in merch like Bearbrick and Ethika.

The company said it reaches 350 million followers through its social media.

FaZe's chief financial officer Amit Bajaj said during a Monday investor call that FaZe expected its sales this year would be roughly $50 million, but now believes FaZe's revenue will rapidly outpace that in coming years following the merger as it delves even deeper into the influencer economy.

"We have a vast network of influence, and we are positioned at the intersection of how Gen Z consumes content and how they transact and engage with that content," FaZe Clan CEO Lee Trink said during an investor call Oct. 25.

B. Riley's SPAC company B. Riley Principal 150 Merger Corp plans on merging with FaZe Clan. The deal will give FaZe Clan access to $120 million in capital through a private investment in public equity (PIPE) that's associated with the blank check company.

In addition, the Wall Street Journal reported the SPAC, a shell company set up to take a startup public, had $170 million that FaZe Clan could access — but that number could fall if investors withdraw ahead of the merger. SPAC arrangements have skyrocketed in the recent year as companies look for access to quick capital.

The merger must still be voted on by shareholders but when complete, FaZe will trade on the NASDAQ under the ticker symbol "FAZE." When the deal is complete, the SPAC will be renamed FaZe Holdings Inc.

FaZe knows the power courting celebrities has when it comes to bringing in new, younger audiences. Singer Pitbull is an investor in FaZe Clan, and in recent years the company has sought out sports pros to join its ranks as esports influencers, including Ben Simmons, Kyle Murray and LeBron James' son Bryce James, also known as Bronny.

In addition to repping the brand, many of FaZe Clan's influencers stream gameplay and post regular video blog updates of their lives in FaZe's lavish creator mansion in Los Angeles.

Trink said partnerships like the one with artist Takashi Murakami to create jerseys and other merchandise has been lucrative, bringing in nearly $1 million in mouse pad sales in one day.

B. Riley SPAC CEO Dan Shribman told the Journal FaZe is "very different than a lot of other explosive growth companies," because it can rapidly expand the brand digitally without spending much money.

"We're starting to move beyond social channels and develop original IP, providing us with opportunities to expand our platform into premium distribution channels, such as Netflix and HBO," Trink told investors on Monday. "We're also expanding into new content formats like podcasts, music (and) live."

Trink also said FaZe is looking to acquire other companies that create content or direct-to-consumer goods as it grows its business. "We believe that M&A (mergers and acquisitions) will be an important and value enhancing element of our strategy and have a very significant pipeline of opportunities we are currently evaluating," Trink said.

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LA Tech ‘Moves’: Mapp Gains New CPO and CTO, Prodoscore Taps Boeing Exec

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

LA Tech ‘Moves’: Mapp Gains New CPO and CTO, Prodoscore Taps Boeing Exec
LA Tech ‘Moves’:

“Moves,” our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.

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This Week in ‘Raises’: GITAI Lands $30M, Steno Gains $15M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Raises
Image by Joshua Letona

A local space robotics startup raised fresh funding to expand the flight model manufacturing facilities throughout the U.S. and increase employment, while a remote litigation platform raised more funding to continue growing its footprint in new markets across the country, develop service channels for its clients and continue expanding its tech team.

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Samson Amore

Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

Gitai Raises $30 Million to Expand Manufacturing Footprint in Los Angeles
\u200bPhoto: Gitai

Space robotics company Gitai raised a $30 million Series B extension this week, bringing the total value of the round to roughly $47 million.

The funding will be used to further develop Gitai’s suite of space robots as well as build out its manufacturing footprint in Torrance. Previously Gitai announced it raised a $17.1 million Series B in March 2021; this additional raise is still part of that round.

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