LA-based esports and lifestyle organization FaZe Clan have reportedly received acquisition offers from GameSquare and Enthusiast Gaming.
According to a report from the Sports Business Journal’s Kevin Hitt, who cites sources close to the process, FaZe remain in discussions with GameSquare and Enthusiast Gaming, and a deal with either company would likely include “some form of an equity swap and a possible cash infusion.”
FaZe’s financial issues are well documented, with the company recently reporting a net loss of $53.2 million for 2022 — up from 2021’s $36.9m loss —, despite a record $70 million in revenue. This came just months after FaZe revealed that its cash assets would be enough to fund the company’s operations only until November 2023.
One of the biggest esports organizations in the world, FaZe went public on the Nasdaq exchange at approximately $13 per share following a SPAC-merger deal valued at $725 million. The company’s stock has since plunged, forcing Nasdaq to issue a deficiency notice after FaZe failed to close trading below the $1 minimum for over 30 consecutive days.
Earlier this year, the Sports Business Journal reported that FaZe were considering a restructuring that would take the company private. The report added that “between $40 million and $60 million” would be needed for FaZe to restructure the group.
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In May, FaZe reportedly slashed about 40 percent of its workforce in a second round of layoffs, just months after firing approximately 40 percent of its staff.
GameSquare owns esports organization Complexity, which competes in games like CS:GO, Apex Legends, Fortnite, Valorant and Rocket League. It also supports a number of content creators, most notably Tim ‘TimTheTatman’ Betar. In February, Tyler ‘Ninja’ Blevins joined GameSquare as the company’s Chief Innovation Officer, launching Ninja Labs.
Enthusiast Gaming controls Luminosity Gaming and operates the Vancouver Titans and Seattle Surge franchises in the Overwatch League and Call of Duty League.
FaZe Clan are also represented in the CDL through a partnership with Atlanta Esports Ventures, which owns and operates the Atlanta FaZe team.
