Esports and gaming holding company GameSquare Holdings has sold 25.5% of FaZe Media, its newly-created subsidiary housing FaZe Clan’s media-related IP.
The stake was sold for $9.5m (~£7.5m) to Richard ‘FaZe Banks’ Bengston, the company’s CEO and one of the original founders of FaZe. GameSquare still owns 100% of FaZe Esports.
The transaction comes just over a month after the announcement of FaZe Media, which FaZe describes as a creator-led media company for FaZe Clan’s IP.
The company said at the time that FaZe Media’s purpose is to “build the value of the FaZe brand” through licensing and sponsorship efforts, together with online events and merchandise launches. FaZe Banks, the founder of FaZe Clan, has been appointed as the CEO of the company.
Prior to the stock sale, GameSquare owned 51% of FaZe Media, and Matt Kalish, President and Co-Founder of fantasy sports platform DraftKings, owned 49%. The company claimed in a release that the transactions would value FaZe Media at approximately $40m (~£31.5m).
Once the newly announced sale is finished, both GameSquare and Bengston will own 25.5% of FaZe Media stock and Kalish will keep his share of the company. GameSquare said it would retain controlling voting interest in FaZe Media, and would also retain voting control of the transferred shares for a period of two years.
According to a release, Bengston has the option to purchase additional shares of the company, if he so desires in the future.
Justin Kenna, CEO of GameSquare, commented in a release: “Today’s announcement is a win-win for GameSquare, FaZe Media, and the greater FaZe Clan community. Since completing the acquisition of FaZe Clan in March 2024 our strategy has been focused on reigniting the FaZe brand by returning its founders in a meaningful way.
“With the support of Matt Kalish and his direct investment in FaZe Media, we structured the new business as a creator-led IP and media company. Today’s announcement solidifies this approach by providing access to a significant stake in the business and aligning FaZe’s founders in the success of the brand.”
GameSquare is a publicly traded esports and gaming holding company that also owns Code Red Esports, StreamHatchet, Fourth Frame Studios and several other companies. First announced in October 2023, GameSquare acquired FaZe Clan in February, in turn selling its other esports team Complexity Gaming.
