GameSquare, the parent company of esports organisation FaZe Clan, has divested its remaining 25.5% stake in FaZe Media, a subsidiary managed by FaZe Clan Founder and current FaZe Media CEO Richard ‘FaZe Banks’ Bengston.
The strategic decision comes as the company looks to optimise its operations, return the control to FaZe’s founders and ultimately pursue profitability. FaZe Clan, however, will remain fully owned by GameSquare.
GameSquare’s financial results are expected to be released on April 16th, 2025. Starting on April 1st, FaZe Media will no longer be consolidated in the publicly traded company’s financial statements.
Established in May 2024, FaZe Media was created as a creator-led IP and internet media company, having secured an $11M investment from Matt Kalish, president and co-founder of DraftKings North America for a 49% stake in the company.
Having entered into a $10m convertible note transaction with Gigamoon Media last year, the company’s latest valuation was at $39.2m (~£30.4m). It is interesting to note that GigaMoon Media is also controlled by Kalish.
GameSquare To Launch New Division
In the divestiture announcement, GameSquare also revealed a new $2m (~£1.55m) credit facility from the Jones Family, led by Dallas Cowboys owner and president Jerry Jones.
The additional liquidity will be used to support the launch of a new division specialised in events business, with focus on immersive in-real-life experiences, leveraging talents and top-tier brands.
Additionally, it plans to carry out a collegiate esports initiative to foster engagement on university campuses, including the creation of competitive tournaments and a proprietary software platform to support team operations and fan interaction.
Justin Kenna, CEO of GameSquare, commented on the announcement: “Divesting FaZe Media is a win-win for GameSquare, FaZe Media and its founders. As we stated when we acquired FaZe Clan, for FaZe to be successful it needed to return to its roots with its founders at the helm to lead the brand and re-establish its authenticity.”
GameSquare is an esports and gaming holding company that also owns Code Red Esports, StreamHatchet, Fourth Frame Studios and several other companies. The company acquired FaZe Clan in February 2024, and ended up selling its other esports team Complexity Gaming.
