FaZe Clan Announces Merger And Listing On NASDAQ With 1 Billion Dollar Valuation

The gaming company FaZe Clan has broken a barrier thought impossible not long ago. FaZe has undergone a merger with B. Riley Principles to make itself listed on the NASDAQ stock exchange, as well as receiving a $1 billion valuation, the first company of its type to do either feat.

The news came as a complete surprise to many who share the esports and Twitch world with FaZe Clan, with adherents already calling for the ticket BRPM to go to the moon.

FaZe Clan is expected to be the first Esports Org with a $1 billion valuation, as they will be merging with B Riley Financial to be listed on the NASDAQ for public trade… Whoah pic.twitter.com/0SJ56GZ2vv

— Jake Lucky (@JakeSucky) October 25, 2021

FaZe Clan is going public at a $1 billion valuation.

The company will do ~$50M in revenue this year & isn't yet profitable, while Barstool was doing ~$100M in revenue & was profitable when acquired at a $450M valuation.

That's one of the best acquisitions in recent memory.

— Joe Pompliano (@JoePompliano) October 25, 2021

Got our share of FaZe, time to save the kids or whatever #FaZeUp pic.twitter.com/Em9NU19wIP

— Team Serenity (@TeamSerenity) October 26, 2021

FaZe has now announced their IPO. They'll be going public at $1B valuation. According to their presentation, they did $30M+ in gross revenue last year and are looking to finish 2022 with around $50M in gross revenue and $19M loss. So, around a 20x gross revenue multiple

— Menashe Kestenbaum (@RavMenace) October 25, 2021

Not everyone was quick to celebrate, however. Some were quick to note that FaZe's $1 billion valuation seems a bit high, especially when they were recently losing approximately $13 million a year. Combined with how stocks usually go on social media, the stock that opened and quickly shot up by over 40 percent had quickly come down to its original opening by closing time.

Bro the new @FaZeClan stock is up 30% in one day thats crazy 😮

— SquaredTheOG (@SquaredTheOG) October 26, 2021

Faze actually raised at 971M FYI. We still have a chance to be worth 1B first :)

— TSM FTX Andy (@TSMReginald) October 25, 2021

Is @FaZeClan worth $1 Billion after their IPO?

Short answer: Absolutely not

Long answer: Not right now. However, they are uniquely positioned to own the future. I expect them to hype trade way above book value for years kind of like Tesla does…

(1/2) pic.twitter.com/Rf4I58NzMu

— Drift0r (@Drift0r) October 26, 2021

I’m excited to see how FaZe Clan turns this into another one of their scams 👀😂 https://t.co/tI0AvxpMaf

— Champ (@ChampChong) October 25, 2021

$BRPM when have we ever seen a stock with this sort of presence on social media? This is gonna be good… @FaZeClan

— Red Hood Trading (@redhoodtrading) October 26, 2021