FaZe Clan in acquisition talks with Complexity & Luminosity owners
This morning, Kevin Hitt of the Sports Business Journal reported that FaZe was "evaluating acquisition offers" from GamesSquare and Enthusiast Gaming, parent companies of Complexity and Luminosity, respectively. The report indicates that the deal would include some form of an equity swap deal and cash infusion.
FaZe has been in the spotlight in recent years for its decision to go public on the Nasdaq via SPAC. The stock price fell below $1.00 per share and traded that way for over 30 days, prompting Nasdaq to issue a delisting notice. During the 2023 Annual Meeting of Stockholders, FaZe shareholders approved a reverse stock split for outstanding shares of common stock. The split will either be 1-20 or 1-30 and will be put into effect at a date to be determined, according to The Esports Advocate.
Gamesquare entering into acquisition talks with FaZe presents a potential conflict with several of the organization's esports offerings. Both FaZe and Complexity operate teams in Counter-Strike, Halo, and FIFA, among other titles. With Counter-Strike being the most significant conflict, it is unknown how there will be a resolution between the two brands. Complexity and FaZe are both partner members of BLAST and Louvre Agreement members of ESL FACEIT Group.
FaZe's other option, Enthusiast, is a Vancouver-based gaming group that is backed by Francesco Aquilini, owner of the NHL's Vancouver Canucks as well as several other esports properties including the CDL Seattle Surge and OWL Vancouver Titans. Any acquisition of FaZe would ultimately see a conflict as FaZe own the Atlanta FaZe, a fellow Call of Duty franchise. Luminosity exited the Counter-Strike space in 2019 after fielding several different Brazilian rosters. They are not currently BLAST partners nor are they part of the Louvre Agreement.
