The news: Gaming and esports brand Faze Clan is merging with SPAC B. Riley Principal in a deal that will see the company go public on the NASDAQ, per gamesindustry.biz. Upon closing, Faze Clan is expected to be valued at about $1 billion.
How we got here: Faze is one of YouTube’s earliest success stories and is one of the first major creator economy companies to go public.
Creators going public: Opportunities and tools for creators were few when Faze first found success. However, given the rising popularity of creator and gaming content, platforms are racing to provide resources to attract and help creators grow audiences.
Faze’s public offering will be a road map for other creator organizations' potential on the stock market. The company is not profitable, bringing in $38 million in revenues last year and projecting at least $50 million in 2021, with plans to use funds from the merger to further develop its content offerings. But the company runs the risk of missing financial goals, similar to several other companies that have gone public via SPACs.
Why it’s worth watching: Faze had a nearly decade-long head start on the creator economy, and if it finds success on the market, other firms could follow its path in the coming years as the industry continues to grow.
11 Times SquareNew York, NY 100361-800-405-0844