Gaming-focused media platform FaZe Clan is set to arrive on NASDAQ after merging with a special purpose acquisition company (SPAC).
11-year-old FaZe Clan unveiled its quick-approaching arrival on the stock market via a formal release that was emailed to DMN. The digital-entertainment platform will specifically merge with B. Riley Principal 150 Merger Corp. (NASDAQ: BRPM), a SPAC “sponsored by an affiliate of B. Riley” (NASDAQ: RILY). Said SPAC is poised to rebrand as “FaZe Holdings Inc.” post-merger, with shares available under the symbol “FAZE.”
Also after finalizing the SPAC combination, FaZe, which in May of this year brought on former Snoop Dogg and Ice Cube manager Kai Henry as chief strategy officer, “is expected to have an implied equity valuation of approximately $1 billion inclusive of nearly $275 million in cash on its balance sheet,” the involved parties indicated. Additionally, the companies’ respective boards have approved the transaction, which is tentatively scheduled to wrap in Q1 2022.
FaZe Clan CEO Lee Trink – who’s held positions at Atlantic Records, Lava Records, EMI, and Virgin Records America – will continue to lead the company while also becoming chairman of the board. And FaZe Clan intends to use the capital influx deriving from the SPAC merger to grow its “digitally native global multi-platform presence across content, gaming, entertainment, consumer products and the metaverse.”
The ambitious expansion plans of FaZe Clan – which in April of 2020 completed a $40 million Series A led by Jimmy Iovine’s NTWRK, with support from Pitbull, Troy Carter, Ray J, Swae Lee, and Offset – arrive as gaming and the metaverse continue to play an increasingly significant role in the music industry.
Over the weekend, for instance, EDC Las Vegas welcomed hundreds of thousands of in-person fans – and a number of attendees in the Roblox universe, which featured live performances from some 50 of the three-day festival’s acts. Roblox (which is backed by Warner Music Group) has hosted several other music events to date, and 2021’s first 10 months have also seen WMG partner with the ESports Players League, lead a Series C for game-mod marketplace Overwolf, fund Roblox game developer Supersocial, and ink a deal with Twitch.
Upon completing a $7 million round, Roar Studios last week emphasized its plans to build a “music metaverse,” and a separate metaverse-focused “music experience startup,” Stage11, raised $5.8 million and secured partnerships with Snoop Dogg and David Guetta about two weeks ago.