The frat house of the video game industry is flinging open its doors and letting the public in.
FaZe Clan, a bombastic organization of gaming celebrities and esports pros that helped pioneered the influencer marketing industry, began trading on the Nasdaq Wednesday after merging with a special purpose acquisition company. It became the first publicly traded Gen-Z influencer company and one of only a handful of esports companies on the market. But FaZe’s business is built on hype and Wall Street wasn’t buying it.
When FaZe agreed to merge with B. Riley Principal 150 Merger Corp. last October, it was given a valuation of close to $1 billion. But much has changed since then, including a broader stock market downturn, investors’ lost interest in SPACs and FaZe’s own revised financial statements. The stock of the new FaZe Holdings Inc. fell 24% in New York to $9.88. Based on 72.5 million shares outstanding, including warrants and other holdings, according to FaZe, that gives the company a fully diluted value of about $716 million.