Faze Clan announced that it will go public through a merger with a blank check company at a valuation of $1 billion, marking it as the first esports company to make this bold move.
Never heard of Faze Clan?
Faze Clan is an esports organization with the greatest following in the world, if you don’t believe us let’s throw some stats. With almost 12 million followers on Instagram, 6 million on Twitter and a reach of more than 345 million throughout their members’ platforms Faze has its social presence undeniable. Besides operating as an esports organization, Faze uses its vast popularity to promote its merchandise with sales of $40 million in 2020 and $50 million in 2021.
Faze operates with a professional team in almost every game, starting with CS:GO, Fortnite, Call of Duty, Valorant and partnerships with successful brands like Nissan, Manchester City, G Fuel, Vix, Verizon and others.
What Is Expected To Happen?
Faze Clan will go public with the help of a SPAC, meaning a special purpose acquisition company. The sole purpose of this latest Wallstreet trend is to buy or merge with companies that try to avoid going through a risky IPO. According to the latest press release that Faze shared, they claim to have $275 million on their balance sheet and have raised $118 million from private investors. The valuation of the company is expected to be around $1 billion.
Should You Invest in The Faze Clan IPO?
Yes, you should. When you see the rise of gaming, and the numbers, it will be very clear where this industry is going. According to one research done by J. Clement, the forecasts show that the value of the video game market will pass the $200 billion mark by 2023.
This does not persuade you? Faze Clan has investors like Pitbull, Ben Simmons, Offset, Bronny James who are promoting it constantly, making sure you don’t miss the famous Faze sign.
If you are a true believer in the gaming industry then the Faze Clan stock is the right choice, not only because it’s the best esports company right now, but also because it’s a trailblazer and we all know what happens when you catch a train like that early.