FaZe Clan’s acquisition by GameSquare has led to a spin-off of the brand’s creators and non-esports assets into FaZe Media. This move aims to return creative control to the personalities that built the brand, with Richard “FaZe Banks” Bengston leading the creator-led IP and media company. FaZe Media plans to refresh its roster of creator talent and develop content for gaming fans, as well as explore new licensing and sponsorship opportunities.
What sets FaZe Media apart is the significant financial and advisory support from Matt Kalish, CEO and President of DraftKings. Kalish has invested $11 million into FaZe Media and will serve on the company’s board. He believes in the leadership and generational creative talent of CEO FaZe Banks and the founders, stating that they can relaunch the FaZe brand and restore it to its former status as a gaming and internet culture juggernaut.
While FaZe Media operates as a subsidiary of GameSquare, Kalish owns a 49% stake in the venture, with GameSquare retaining 51% ownership. This arrangement allows GameSquare to provide corporate and agency services to FaZe Media. GameSquare CEO Justin Kenna will also join Kalish on the board of FaZe Media.
The $11 million investment from Kalish is crucial for both FaZe Media and GameSquare, as they have consistently reported losses in their earnings reports. GameSquare’s cash losses from operations averaged around $3-4 million per quarter in 2022 and 2023. However, with the recent cash infusion and the additional $10 million secured through a PIPE financing round, GameSquare has mitigated immediate liquidity risks. The company’s long-term financial health will be clearer when it files its first quarter financial results.
Overall, the spin-off of FaZe Clan’s creators and non-esports assets into FaZe Media, along with the support from Matt Kalish, presents an opportunity for the brand to regain its authenticity and expand its reach. This move is crucial for GameSquare as well, as it helps stabilize their financial situation and showcases their commitment to founder and creator-led organizations. With the right strategies and investments, FaZe Media has the potential to reclaim its position as a leading force in gaming and internet culture.