Los Angeles-based esports and gaming media company FaZe Clan has announced plans to merge with a Special Purpose Acquisition Company (SPAC) in a deal that would give the newly formed publicly traded company an implied valuation of a massive $1 billion.
B. Riley Principal 150 Merger Corp. (BRPM) is a blank-check company sponsored by an affiliate of B. Riley Financial. Estimated gross transaction proceeds from the deal with FaZe Clan will total $291m, which includes $173m in cash from BRPM’s IPO proceeds held in trust and $118m from committed private investment in public equity investments. On completion of the proposed merger, BRPM will change its name to FaZe Holdings Inc. and the combined company’s common stock is expected to be listed on NASDAQ exchange. FaZe Clan claims to reach over 350m global followers across social platforms and that 80% of its audience is aged between 13 and 34. The company operates 10 competitive esports teams that have, to date, won 30 championships around the world. Content produced by FaZe Clan includes video blogs, lifestyle and branded content, gaming highlights and live streams of esports events. The company boasts a roster of more than 85 esports pros and celebrities. It will use proceeds from the SPAC merger to fund organic and inorganic growth, suggesting it is looking at M&A deals and across content, gaming, entertainment and consumer products. The combined company will be led by FaZe Clan’s current CEO, Lee Trink, who will also become Chairman of the Board. In a statement, Mr. Trink said: “In our short history, FaZe Clan has evolved from a disruptive content generator to one of the world’s most decorated and successful esports franchises, and now into one of the younger generation’s most recognised and followed brands globally.”