FaZe Clan, one of the most recognizable names in esports and gaming, could be taking a financial stumble, the Sports Business Journal reports.
In October, the North American brand declared that it would go public on the Nasdaq at a $1 billion valuation through a merger with B. Riley Principal 150 Merger. Rapper Snoop Dogg sits on the FaZe Clan board of directors.
A recent amendment to its merger filing on Form S-4 with the SEC revealed potentially detrimental issues with the business. Sources tell Sports Business Journal that the FaZe Clan merger may be dead in the water, placing an additional burden on the status of the company’s plans to go public.
The latest turn of events could cost FaZe Clan and its stakeholders dearly. Worst-case scenario, the $1 billion figure on the horizon can turn into a fight against bankruptcy. Not only did the recent developments drop the post-merger market capitalization of FaZe Clan substantially below the billion-dollar mark, but it also reduced the expected transaction proceeds from the merger by presumably at least $73 million, which is in doubt at best. Read more.
