By Will Feuer
GameSquare Holdings has agreed to buy FaZe Holdings, the parent company of the FaZe Clan professional eSports team, in an all-stock deal.
Shares of FaZe Holdings, which went public last year through a merger with a special-purpose acquisition company, are down 90% this year and closed Thursday at just over 18 cents a share. The company has sought to position itself as something of an influencer platform in the videogame space.
GameSquare, which counts Dallas Cowboys owner Jerry Jones as its largest shareholder, owns various assets including GCN, a digital-media company that works with eSports tournaments and others to stream their competition.
FaZe Holdings shareholders will receive 0.13091 share of GameSquare’s common stock for their FaZe Holdings stock.
The combined company would have generated annual revenue of about $138 million last year, the companies said, and management expects to see over $18 million in run-rate cost savings from the deal.
GameSquare said it will also bring back several of FaZe Clan’s founders to lead the company, including naming Richard Bengtson as CEO of FaZe Clan.
Along with the deal, GameSquare said Goff & Jones Lending, which is backed by Jerry Jones, has agreed to buy $10 million of stock in a private placement if necessary to complete the FaZe Holdings deal.
Write to Will Feuer at [email protected]
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