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FaZe Considering Shift Back To Private Ownership

FaZe Considering Shift Back To Private Ownership

Esports giant, FaZe Clan is reportedly considering a shift to private ownership after a turbulent time on the Nasdaq exchange.

The move comes just eight months after the company went public through a SPAC deal, with a valuation of US$725 million.

However, FaZe Clan’s share price has dropped dramatically since its debut, falling to US$0.53 from an initial price of US$13 per share.

The company has also been trading below the minimum closing bid price requirement for 32 consecutive business days, risking a deficiency notice.

According to Sports Business Journal, FaZe would require between US$40 million and US$60 million to restructure and shift back to private ownership, however, the company is struggling in such efforts.

This news comes amid a tough time for the esports industry, with many companies laying off staff or even ceasing operations.

In its latest quarterly filing, FaZe Clan reported having only US$43.9 million in cash assets, which would be enough to fund the company’s operations until November 2023.

FaZe will release its financial results for the fourth quarter of 2022 and the full year on March 30, which will provide a clearer picture of the company’s financial health as it considers going private.

The move to private ownership would be a significant shift for the company, which recently underwent a massive round of layoffs, cutting 20% of its workforce.

Despite the challenging economic environment, FaZe CEO, Lee Trink has expressed optimism about the company’s future.

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