Faze Clan Going Public In Deal That Is Somehow Worth $1 Billion

Fresh off a big crypto scam involving a number of its members only four months ago, Faze Clan announced today that the group is about to become a publicly traded company, meaning fans will soon be able to buy shares. Their initial valuation? Oh, $1 billion.

The move was announced in a press release posted to the group’s website earlier today, which is full of exactly the kind of language you’re expecting and hoping it to, like:

FaZe Clan is at the forefront of the global creator economy — an industry centered around innovative digital content development fueled by social media influencers, creators and businesses who monetize their content online. With a leading digital content platform created for and by Gen Z and millennials, FaZe Clan has established a highly engaged, loyal global fan base of over 350 million across its combined social platforms that rivals established major sports leagues and generates more social media interactions than the next top eight esports organizations combined.

They’re estimating that this will raise nearly $300 million in cash, which they’ll immediately reinvest into a “global multi-platform growth strategy spanning content, gaming, entertainment, and consumer products, including potential acquisitions.”

This is big news for a group of guys who started out making trick shot YouTube videos, but there are also some concerns here. Firstly, you need to be 18 to buy shares, which rules out most of Faze’s fanbase. Secondly, while Faze Clan and all their associated efforts are popular as hell, there is no way this company is worth $1 billion at the moment. As DoTEsports’ Jacob Wolf says, “The fact FaZe will be valued at $1 billion because of this SPAC deal is wild to me. Feels all hype and no sauce.” Other major esports teams have gone public for only a fraction of this, and some of those, like TSM, offered far sounder investments as part of their offering (like PC hardware) than Faze’s more fickle focus on “content.”

That’s not to say Faze won’t change this. Like they said in their announcement, they’ll be looking at acquisitions, and given their background you’d expect those to have something to do with esports and video games. But those haven’t happened yet, so valuing them at such an astronomical price ahead of time sure sounds optimistic.

Read the full article on Kotaku