Strive Managing Director, Malph Minns, provides comment on the Forbes article “FaZe Clan Faces ‘Substantial Doubt’ It Can Survive — Five Months After Going Public” following the team’s November 2022 earnings report. Strive’s expertise in esports investment was recognised by Forbes from the work the company has done with private equity and venture capital in the space.
Forbes article: FaZe Clan Faces ‘Substantial Doubt’ It Can Survive — Five Months After Going Public
The company for online creators has experienced a confluence of factors that have cooled off its business. Without an infusion of funding, FaZe Clan may be looking at Game Over.
When Snoop Dogg stalked the stage at the 2022 Super Bowl halftime show wearing a FaZe Clan-branded gold chain, it marked an important moment for the esports organization turned lifestyle brand that fancies itself the paragon of youth culture: FaZe Clan had arrived.
The jewellery was a signal Snoop had become a FaZe Clan “member,” joining the ranks of professional gamers, online content creators and other celebrities like Lil Yachty, Kyler Murray and Bronny James who make up the ultimate aspirational cool kids’ club. FaZe’s calling card is its ability to partner with these talents to push both competitive esports and casual gaming further into the mainstream. Whether it be at the Super Bowl, on the cover of Sports Illustrated or at buzzy parties at the company’s Los Angeles headquarters, FaZe has worked hard to build its reputation.
But getting Snoop Dogg to join the club didn’t come cheap. For the use of his likeness, and reputation, FaZe agreed to give him $1.9 million in stock and a spot on the company’s board of directors, plus $248,000 worth of stock each to his son and companies controlled by his spouse and his manager. The stocks will fully vest when their initial two-year partnership ends in early 2024. Snoop Dogg’s representatives didn’t respond to requests for comment.
Read the full article: FaZe Clan Faces ‘Substantial Doubt’ It Can Survive — Five Months After Going Public
Click here to read the full Forbes article: “FaZe Clan Faces ‘Substantial Doubt’ It Can Survive — Five Months After Going Public”.
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Frequently asked questions
Who owns Faze Clan?
Faze is owned by a variety of institutional and private investors, employees, and the players and creators themselves.
How much is Faze worth?
As of December 2022, Faze has a market cap of just over USD $150 million.
How does Faze Clan make money?
Faze earns revenue from esports competition winnings, sponsorship, advertising (from its video content – streamed and on-demand), merchandise sales