A bit of interesting esports news this morning as FaZe Clan has announced they will move forward to be a publicly listed company. They have officially entered into a definitive merger agreemen to combine with B. Riley Principal 150 Merger Corp., a special purpose acquisition company sponsored by an affiliate of B. Riley Financial, Inc. The implied equity value has been set at approximately $1 billion for the combined company inclusive of nearly $275 million of cash (assuming no redemptions). The will officially be listed on the stock market as "FAZE", as they will be working on a pro forma basis post-closing.
Existing FaZe Clan stockholders will own 68% of the equity interest, all of whom are expected to roll 100% of their equity into the combined company. We have a few quotes about the announcement this morning as we now see how well an esports entity will do on the same playing field as oil companies, manufacturers, and soda dispensers. For interested investors, there will be a webcast this morning at 9am ET and replay will be available at investor.fazeclan.com or via this webcast link.
"We are thrilled to announce this important milestone of FaZe Clan's plans to enter the public market.," said Lee Trink, Chief Executive Officer of FaZe Clan."In our short history, we have evolved from a disruptive content generator to one of the world's most decorated and successful esports franchises, and now into one of the younger generations' most recognized and followed brands globally. We believe FaZe Clan is becoming the voice of youth culture, a brand that sits at the nexus of content, gaming, entertainment and lifestyle in the digital-native world. This transaction will provide us capital and access to the public markets, which will help us accelerate the expansion of our multi-platform and monetization strategy. We are so grateful to the millions of loyal fans who have helped us take FaZe Clan to the next level, without whom this would not have been possible. Lastly, we look forward to working with Dan and Bryant, and the B. Riley team and appreciate their support and confidence."
"The business combination with FaZe Clan represents a tremendous opportunity to invest in the future of media and entertainment," said Dan Shribman, Chief Investment Officer of B. Riley Financial, and CEO and CFO of BRPM. With unmatched social media reach and Gen Z engagement, and the opportunity to meaningfully expand its global multi-platform presence across content, gaming, entertainment, consumer products and the metaverse, we believe FaZe Clan is a compelling investment with the potential to create significant value. We are excited to partner with Lee, Amit and the incredible talent that make up the FaZe Clan team. Lee has surrounded himself with a creative and energetic team and we look forward to working with them on this journey."