FaZe Clan is becoming a public company via SPAC

This story about making big moves, boiled down, in 1:13 minutes.

What's the fuss?

One of the world's most popular media and esports organizations is becoming a public company. Although not the first deal of its kind, this incredible journey shows the growth potential the industry has in the eyes of mainstream finance.

The situation

When FaZe Clan began 11 years ago, they were just a bunch of skilled Call of Duty players posting their clips to YouTube.

Today, the organization that once graced the cover of Sports Illustrated has transcended into a cultural phenomenon spanning esports, apparel, content creation, and much more.
With a previous $305 million valuation, the organization has attracted the likes of A-list celebrities and high-caliber venture capitalists as investors and partners.

That valuation will soon become $1 billion as FaZe Clan becomes a public company via merger with a SPAC (Special Purpose Acquisition Company).

With the following injection of cash, FaZe plans "to invest in rapid growth towards the Gen Z and Millennial digital entertainment spaces".

Boiling it down

A SPAC is an interesting financing vehicle, only existing on the public markets to buy another company.

Given the non-operation nature of the "company", SPACs have garnered much controversy recently as many of them struggled to meet their targets.
In addition, many consider SPACs as a "scam by celebrities and high net worth individuals" due to their capital structure.

This merger may open the floodgates for similar gaming & media-related acquisitions as Wall Street and strategic operators see the industry as a prime channel to reach young audiences.

Despite the money pouring in, it will force these organizations to be fully transparent with their operations to the public.
FaZe's success hasn't come without a fair share of controversy, so it will be interesting to see if any more skeletons reach the surface due to such regulations.

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