Shareholders of esports holding company GameSquare Holdings have voted to approve the company’s pending merger with North American esports organisation FaZe Clan.
GameSquare and FaZe said they anticipate the merger will close ‘shortly’, though it is still subject to standard closing conditions.
Details such as the breakdown of votes for and against the merger were not immediately available prior to publication. Prior to the meeting, members of GameSquare’s Board of Directors unanimously recommended that shareholders vote in favour of the acquisition.
FaZe Clan shareholders already voted to approve the merger in a meeting on February 16th. In that meeting, shareholders representing 91% of FaZe stock voted to approve the merger.
The acquisition was originally expected to close in Q4 of 2023 but has been delayed. In January this year, GameSquare told Esports Insider the deal was in its final stages.
GameSquare announced its intent to acquire FaZe Clan in October 2023, in a deal that Bloomberg reported valued FaZe Clan at roughly $17m (~£13.4m). The figure would mark a significant collapse in value for the company, which was once valued at as much as $1bn prior to its public listing.
GameSquare is a holding company that owns North American esports organisation Complexity Gaming, marketing agency Code Red, live streaming analytics service Stream Hatchet and many more. Both GameSquare and FaZe Clan trade on the NASDAQ stock exchange.
The merger comes at a time of increasing consolidation in esports, as both teams and tournament organisers look to reduce overheads and continue operating amid a market correction.
However, GameSquare’s acquisition of rival North American organisation FaZe Clan also raises conflict of interest concerns, since both organisations field Counter-Strike teams and compete against each other in partnered leagues such as BLAST Premiere and ESL Pro League.
GameSquare told Esports Insider in January that it was ‘assessing multiple options’ regarding the conflict of interest. Tournament organisers ESL and BLAST are both reportedly monitoring the implications of the deal.
