GameSquare Sells a Quarter of FaZe Media for Almost $10M

GameSquare Holdings has sold a 25.5% stake in FaZe Media, its newly created subsidiary housing FaZe Clan’s media-related intellectual property, to one of FaZe Clan’s original founders, Richard “FaZe Banks” Bengston, for $9.5 million. It’s important to note that GameSquare still retains 100% ownership of FaZe Clan itself.

Strategic Focus on Reinvigorating the FaZe Brand

This sale comes just over a month after FaZe Media was announced. FaZe Media is described as a creator-led media company for FaZe Clan’s IP, aiming to “build the value of the FaZe brand” through licensing, sponsorships, online events, and merchandise launches. FaZe Banks has been named CEO of this new venture.

Ownership Structure Before and After the Sale

Prior to the share sale, GameSquare held 51% of FaZe Media, with Matt Kalish, President and Co-Founder of fantasy sports platform DraftKings, owning the remaining 49%. Following the sale, GameSquare and Bengston will each own 25.5% of FaZe Media, while Kalish will retain his 49% stake.

Voting Control and Future Options

GameSquare will maintain voting control over FaZe Media and the transferred shares for a two-year period. Additionally, Bengston has the option to acquire more shares in the future if he chooses.

Statements from GameSquare

“This announcement benefits GameSquare, FaZe Media, and the entire FaZe Clan community. Since completing our acquisition of FaZe Clan in March 2024, our strategy has focused on revitalizing the FaZe brand and returning it to its founders in a meaningful way.”

“With the support of Matt Kalish and his direct investment in FaZe Media, we have structured the new business as a creator-led media and IP company. Today’s announcement solidifies this approach, providing significant equity in the business and aligning FaZe’s founders with the brand’s success,” said Justin Kenna, CEO of GameSquare.

Conclusion