FaZe Clan reportedly considering acquisition offers from GameSquare Esports, Enthusiast Gaming

Update 25/07/23: Enthusiast Gaming has since issued a response to Esports Insider stating that it has not submitted an offer to acquire FaZe Clan.

faze clan logo financials
Image credit: FaZe Clan

North American esports organisation FaZe Clan is reportedly evaluating potential acquisition offers from GameSquare Esports and Enthusiast Gaming, according to a report by Sports Business Journal.

Sources told Sports Business Journal that discussions are still ongoing, but that a deal may include some form of equity swap or potential cash injection.

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Esports Insider has reached out to Enthusiast, FaZe Clan and GameSquare for comment. A spokesperson for GameSquare said it was unable to comment on the reported discussions. FaZe Clan also declined to comment on the matter. 

However, it’s important to note that in an SEC filing on June 14th FaZe Clan disclosed that it was in the process of evaluating options to shake up the company’s structure. “The company’s Board of Directors is highly engaged in the process of assessing various options regarding the company’s capital structure,” the filing said. 

“The Board is continuing to advance this process, which could result in an equity investment by, or another form of transaction with, a strategic or financial partner. However, there can be no assurance that any of these options will come to pass, and the Company is not in a position to give a timeline for a decision.”

The report on FaZe Clan’s potential acquisition follows what has been a turbulent period for the organisation since it first became a publicly listed company on NASDAQ in July 2022. Despite continued competitive success across a variety of esports titles, the organisation’s stock has plummeted from $1.74 at the start of January 2023 to $0.41.

As a result of remaining under a required $1 stock price threshold for more than 30 days FaZe received a notice of delisting from NASDAQ. The organisation’s shareholders approved a reverse stock split to boost its share price above the threshold earlier in July.

In Q1 2023, FaZe Clan reported a net loss of $14m.

Both of FaZe Clan’s potential offers of an acquisition come from two other publicly NASDAQ-listed companies. GameSquare Esports notably owns North American esports organisation Complexity Gaming, and in late 2022 announced a merger with Engine Gaming and Media.

On the other hand, Enthusiast Gaming 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.

Tom Daniels
Tom has been part of Esports Insider's team since October 2020 and is currently the platform's Editor. When not playing Football Manager, he enjoys reporting on the mobile esports scene as well as the betting sector.