GameSquare spins off creator-focused FaZe Media, raising $11M



On the heels of completing its acquisition of FaZe Clan, GameSquare announced plans to spin off the brand’s creators and non-esports assets into FaZe Media. The gaming conglomerate backed by Jerry Jones and the Goff family will still own a majority of FaZe Media. However, Matt Kalish, CEO and President of DraftKings, will own a minority stake thanks to a new $11 million investment.

Critically, FaZe Media plans to return creative control to the personalities that built the brand in the first place. Richard “FaZe Banks” Bengston, one of FaZe Clan’s founders will lead the brand new creator-led IP and media company.

“Grateful for the opportunity at a genuine reset with FaZe Clan. Anyone that’s actually tapped in can agree, this was long overdue. We’ve prioritized pretty much exclusively on creating a fun environment that we (as FaZe members) can find passion in, be excited about, look forward to. Do things we find interesting, exploring opportunities in content we feel are important/relevant to our culture/community. Partnering with Matt Kalish & GameSquare has proven paramount in this vision coming to fruition,” said Bengston in a statement.

FaZe Media plans to refresh its roster of creator talent and continue developing content for gaming fans. Moreover, FaZe Media looks to expand the reach and value of its brand. The company will explore new licensing and sponsorship opportunities as well as develop its own products, merchandise and events.

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FaZe Media also launches with 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 Frisco, Texas-based company’s board.

“My investment in FaZe Media and decision to join its board is a vote of confidence in the leadership and generational creative talent of CEO FaZe Banks, as well as that of FaZe’s founders and creator roster. I believe this team, with the support of GameSquare’s capabilities and infrastructure, can relaunch the FaZe brand and restore it to the gaming and internet culture juggernaut the founders had originally created,” said Kalish in a statement.

The new venture will continue to operate as a subsidiary of GameSquare, which will retain 51% ownership of FaZe Media. Kalish will own the remaining 49% stake in the new venture. Notably, this excludes FaZe Clan’s esports assets, which will remain with GameSquare.

GameSquare will continue to work closely with FaZe Media to provide certain corporate and agency services. Additionally, GameSquare CEO Justin Kenna will join Kalish on the board of FaZe Media and the conglomerate’s other subsidiaries will

“Since completing the acquisition of FaZe Clan, we have focused on returning FaZe’s founders to reboot their brand and reestablish its authenticity,” said Kenna in a statement. “We are thrilled to better capitalize this business for growth with $11 million in new capital from Matt [Kalish], and to strengthen the FaZe Media board with his addition. Matt deeply believes in the power of founder and creator-led organizations and shares the vision to return FaZe back to its roots by empowering its creators.”

GameSquare’s financial future

The $11 million in liquid capital will be a much needed kick start for FaZe Media and its parent company.

Both FaZe Clan and GameSquare have consistently reported losses (and potential liquidity risks) in earnings reports. Across 2022 and 2023, GameSquare reported its cash losses from operations averaged roughly $3-4 million per quarter.

In its most recent financial results GameSquare said it had $3 million in cash on hand as of December 31, 2023. In addition to the cash on FaZe Clan’s balance sheet, the company also secured a further $10 million in March 2024, thanks to a PIPE financing round that closed alongside the acquisition.

With this influx of cash, GameSquare has mitigated the immediate danger. However, the company’s long-term health will be clearer when it files its first quarter financial results in the coming days.



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