Esports and media holding company Enthusiast Gaming has denied a report that it is potentially seeking to acquire North American esports organisation FaZe Clan, via an email sent to Esports Insider.
Earlier this week, it was reported that FaZe Clan is evaluating potential acquisition offers from GameSquare Esports and Enthusiast Gaming. A spokesperson from Enthusiast has since told Esports Insider that it has not submitted an offer.
When reaching out to Enthusiast Gaming for a comment on the matter, the organisation issued the following statement: “Enthusiast Gaming has not submitted any offer to acquire Faze Clan, nor does it anticipate doing so.”
While an official offer wasn’t submitted, this does not mean that Enthusiast was not engaged in discussions with FaZe, as originally reported by Sports Business Journal. However, Enthusiast has seemingly indicated with the latter part of the statement that it will not be engaging in an acquisition.
A spokesperson for GameSquare said it was unable to comment on the reported acquisition discussions. FaZe Clan also declined to comment on the matter.
Enthusiast Gaming is a publicly-listed company on the NASDAQ, similar to FaZe Clan. The Canadian-based company owns several esports and gaming assets including Luminosity Gaming, Call of Duty League franchise Seattle Surge, Overwatch League team Vancouver Titans, blockchain game EV.IO and multiple gaming websites.
Enthusiast Gaming reported a net loss of CAD $76.8m (~£45.9m) for the entirety of 2022.
Since becoming publicly listed in July 2022, FaZe Clan has gone through tumultuous periods internally and financially. In Q1 2023, FaZe Clan reported a net loss of $14m (~$10.8m).
Moreover, the organisation’s stock is currently priced at $0.39, significantly lower than its value of $1.74 at the start of January. This is all despite FaZe Clan continuing to have competitive successes within the esports scene.
