FaZe Clan: its takeover could be rejected due to bankruptcy

Is FaZe Clan about to go down? The esports group, veteran on the scene, faces a risk of bankruptcy, explains the Sports Business Journalwhile the merger with the BRPM fund could be rejected. Last March, FaZe announced plans to merge with B. Riley Principal 150 Merger Corp, a SPAC, ie a company specializing in the acquisition of groups to allow them to join the markets. The deal was to be signed at the beginning of 2022. This takeover was to allow them to join the NASDAQ and be valued at $1 billion.

But in the esports structure’s latest exercise report, FaZe Clan shows risks of bankruptcy, according to the amendment filed by BRPM in court. This official amendment demonstrates that the costs of the structure have increased and that the net income is weaker than expected despite an increase in turnover to 52 million dollars. FaZe’s loss would be 28 million, 10 more than expected. The buyer believes that the profitability should not not return before 2023. In the best of scenarios, the group’s capitalization should therefore not exceed the expected billion, but rather 73 millionenough to cool its buyer, who has not yet finalized the contract.

Recently the team won IEM Katowice 2022 and ESL Pro League 15 on CS:GO. She will play as the top seed at the PGL Major in Belgium. The club had offered the services of Snoop Dogg for a major promotional campaign, until the musical interlude of the Super Bowl. The star rapper is now officially a member of the structure. An action that was carried out with the prospect of this listing on the Stock Exchange and which contributed to expenses related to communications and sponsorships of 25 million dollars. This could have serious consequences…