Online gaming brand FaZe Clan has announced it will be going public via a SPAC merger with B Riley Principal 150 Merger Corp (BRPM) at a valuation of $1b. The deal also features a private investment in public equity of around $120m.
Founded in 2010 and based out of Los Angeles, FaZe Clan was created by young people, for young people — and the rest aren’t invited. The company considers itself to be the leading online gaming brand among millennials and Gen Zers with a global audience of roughly 350 million people.
FaZe Clan has some of the most talented gamers in the world competing in e-sports under its banner. It’s won partnerships with large brands like McDonald’s (MCD) and Totino’s Pizza Rolls over the years, which has helped it appeal to younger audiences.
why it matters
SPACs have been the investment vehicle of choice for fast-growing digital platforms like FaZe Clan in recent years. FaZe Clan will soon join the ranks of similar SPAC-launched companies like DraftKings (DKNG) and Skillz (SKLZ).