Esports company GameSquare Holdings has gained approval from its shareholders for the merger with North American esports organization FaZe Clan. Members of GameSquare’s Board of Directors have recommended all the shareholders vote in favor of the merger, but the breakdown of the votes has not been revealed. The deal is currently going through the standard merger processes, which are expected to be completed shortly.
FaZe Clan had a meeting on the 16th of February regarding this acquisition in which 91% of its shareholders approved the merger with GameSquare Holdings. However, the valuation of FaZe Clan has shifted remarkably over time. When FaZe Clan was listed publicly, its value was estimated at $1 billion. Now, this acquisition of FaZe Clan is valued at approximately $17 million, which shows a remarkable difference from its previous valuation.
The talks of the merger of FaZe Clan with GameSquare Holdings have been going on for the last one year, and the deal was expected to close in Q4 of 2023. However, GameSquare Holdings hinted in January that there were delays for different reasons, but the deal is in its final stage.
GameSquare Holdings is one of the major companies in the industry. It owns marketing agency Code Red, live streaming analytics service Stream Hatchet, North American esports organization Complexity Gaming, etc.
Both GameSquare Holdings and FaZe Clan are publicly traded on the NASDAQ stock exchange. Also, both GameSquare Holdings and FaZe Clan maintain Counter-Strike teams that play against each other in partnered leagues like BLAST Premiere and ESL Pro League. Due to these reasons, some people have raised concerns regarding conflicts of interest in this merger.
The Esports industry is evolving continuously, and companies are adapting strategies like partnerships and mergers to align with the changes and succeed. The merger of GameSquare Holdings and FaZe Clan is a strategy to succeed in the market.
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