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Wednesday, Jul 6, 2022

Faze Clan Merges With B. Riley SPAC

Faze Clan Inc., a Burbank-based gaming, lifestyle and media company, plans to merge with a blank check company formed by Sawtelle-based financial services company B. Riley Financial Inc.

The merger, which is expected to close in the first quarter of 2022, would give Faze Clan a $1 billion enterprise valuation and $225 million in cash on its balance sheet.
Upon completion of the combination with B. Riley Principal 150 Merger Corp., the blank check company will change its name to Faze Holdings Inc.

The combined company’s common stock is expected to be listed on the Nasdaq stock exchange under the ticker symbol “FAZE.”

The estimated transaction proceeds of $291 million, including an estimated $118 million in proceeds raised from private investors, will be used to fund Faze Clan’s global multiplatform growth strategy spanning content, gaming, entertainment and consumer products, including potential acquisitions.

“We are thrilled to announce this important milestone of Faze Clan’s plans to enter the public market,” said Lee Trink, Faze chief executive. “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.”

Faze Clan was founded in 2010 and recently moved from its headquarters in the Hollywood Hills to a $30 million mansion in Toluca Lake. It made headlines by appearing on the cover of the July issue of Sports Illustrated — the first for an esports gaming company.

B. Riley’s New York-based blank check company, also known as a special purpose acquisition company, or SPAC, is the fourth formed by B. Riley in recent years.
B. Riley’s fourth blank check company is co-led by Daniel Shribman, B. Riley Financial’s chief investment officer and president of B. Riley Principal Investments, and Bryant Riley, B. Riley Financial chairman and co-chief executive.

B. Riley Principal 250 Merger intends to focus on established businesses that have an enterprise value of $800 million to $2 billion.

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