FaZe Clan Founders Regain Leadership

GameSquare has prepared acquisition of one of the leading esports organizations - FaZe Clan. The organization’s original founding members Banks, Temperrr, and Apex are set to return to their leadership positions with the new changes.

In a monumental development within the gaming industry, esports organization FaZe Clan is set to undergo an acquisition by GameSquare holdings. As part of the transition, founding members Banks, Temperrr, and Apex will return to the helm, leading the organization once again. This transformation intends to bring FaZe Clan back to its original roots, reinstating those who made the organization what it is today.

This announcement was made public on October 20th, when GameSquare declared it had entered into a 'definitive agreement' for the acquisition. The transaction would involve an arms-length all-stock procedure, ensuring a seamless transition. This acquisition is seen as a strategic move to reform the organization and strengthen its growth and development in the future.

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Change is not a newcomer to the FaZe Clan. The organization went public in 2022 but faced some turbulence on its journey in the Nasdaq. Unfortunately, it failed to maintain a share price above the required $1 for a significant period, leading to its delisting from the exchange.

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With GameSquare’s takeover, the founding members of FaZe Clan will return to leadership positions. Richard “FaZe Banks” Bengtson will be taking over as CEO, while Thomas “FaZe Temperrr” Oliveira will hold the position of President, and Yousef “FaZe Apex” Abdelfattah will be stepping in as COO. The collective leadership of these three individuals is set to restore the core values and objectives of the organization.

Christoph Pachler, Interim CEO of FaZe Clan, expressed his positivity towards the changes. In his statement, he voiced his confidence in the merger with GameSquare and the benefits it offers FaZe Clan’s shareholders. He believes that the combined strengths of both FaZe Clan and GameSquare are a powerful duo that will enhance the long-term value of the company.

The news of the acquisition came a few months after the release of FaZe Clan's former CEO, Lee Trink. Removal from his position in September, as reported, was one of the conditions of the acquisition going through. This shift marks a new chapter in the organization's history and structure.

FaZe Banks is one of the key players who is expected to thrive with the new organizational structure. He is one of the founding members of the organization and will be returning as CEO to drive FaZe Clan back to its glory days. His knowledge and experience with the organization would positively impact the decision-making process and contribute heavily to its growth.

The acquisition negotiations put the organization’s current stock value at around $16 million. This calculation made using last available data and could potentially shift by the actual completion of the deal.

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GameSquare Carves Out New Acquisition Path

GameSquare is a seasoned player in the esports industry. They currently own other significant esports brands, such as Complexity Gaming and Code Red Esports. The acquisition of FaZe Clan would further bolster their gaming portfolio, emphasizing their dominance in the industry.

Justin Kenna, CEO of GameSquare, believes that acquiring FaZe Clan will give them a robust position in the gaming community, one of the largest and most engaged segments globally. The amalgamation of resources between FaZe Clan and GameSquare could lead to a scaling solution in the youth/culture market space within the gaming industry. This development is said to yield impressive results for both organizations and their communities.

One of the primary criticisms facing the FaZe Clan in recent years was the significant shift from the founding members. The founding members vested interest in the brand, and their deep understanding of the organization, its objectives, and its audience. The return of these founding figures, namely Banks, will bring a new yet familiar approach to the organization’s operations, ensuring its continuity and success.

Banks, returning as CEO, noted being back in charge with Tommy and Apex will help restore FaZe Clan to its 'peak years.' 'We grew up on the internet and understand this brand better than anyone ever could,' Banks emphasized, reinforcing his confidence in making FaZe Clan achieve new heights under their leadership.

The entire shift is not only about personnel changes but also financial re-structuring. GamesSquare, in their announcement, estimated to save around $18 million from their current expenditure exploring efficiencies across the organization while reducing corporate costs.

Based on their 2022 performance, a joint venture between FaZe Clan and GameSquare would have reportedly made an annual revenue of about $138 million. Given this financial outlook, the expected closing time of the transaction is the fourth quarter of 2023.

The merger, despite being approved by the boards of both FaZe Clan and GameSquare, is still subject to shareholder approval. Once the deal is finalized, existing GameSquare shareholders are expected to own about 55% of the newly merged company, while FaZe Clan shareholders will own approximately 45%.

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