Business
GameSquare Sells 25.5% Interest in FaZe Media for $9.5 Million
Transaction follows $11 Million investment from Matt Kalish for 49% interest in FaZe Media, valuing FaZe Media after the sale at approximately $40
About this update from Gamesquare Holdings, Inc.
[{"type":"text","content":"Transaction follows $11 Million investment from Matt Kalish for 49% interest in FaZe Media, valuing FaZe Media after the sale at approximately $40 millionGameSquare to retain controlling voting interest in FaZe Media, and will continue to consolidate FaZe Media's financial results in its financial statementsGameSquare continues to own 100% of FaZe Esports, one of the world's best and most recognized esports organizations FRISCO, TX / ACCESSWIRE / June 18, 2024 / GameSquare Holdings, Inc. (NASDAQ:GAME), (\"GameSquare\", or the \"Company\"), today announces that it has sold a 25.5% interest in FaZe Media for $9.5 million to an entity controlled by FaZe Media's CEO FaZe Banks. The sale follows an $11 million investment by Matt Kalish for 49% of FaZe Media that was completed in May 2024. These transactions value FaZe Media at approximately $40 million. GameSquare continues to own 100% of FaZe Esports.Justin Kenna, CEO of GameSquare stated, \"Today's announcement is a win-win for GameSquare, FaZe Media, and the greater FaZe Clan community. Since completing the acquisition of FaZe Clan in March 2024 our strategy has been focused on reigniting the FaZe brand by returning its founders in a meaningful way. With the support of Matt Kalish and his direct investment in FaZe Media, we structured the new business as a creator-led IP and media company. Today's announcement solidifies this approach by providing access to a significant stake in the business and aligning FaZe's founders in the success of the brand.\"FaZe Media is focused on expanding the value of the FaZe brand IP and returning creative control of the brand to its founding leaders who created one of the most influential global internet brands dedicated to gaming, esports and youth audiences. FaZe Media will seek to expand the licensing and sponsorship opportunities for the FaZe brand across many categories, as well as deliver products, merchandise, events and more under the FaZe brand.Transaction Details:An entity controlled by FaZe Media's CEO FaZe Banks acquired a 25.5% interest in FaZe Media from GameSquare at a price of $1.66 per share, for total cash consideration of $9.5 million. GameSquare intends to use the proceeds of the transaction to invest in growth and support working capital requirements. Following the transaction, GameSquare owns 25.5% of FaZe Media, however, the ...