A huge movement shook the esports scene this Friday morning (20). A GameSquarecompany that owns Complexityannounced the acquisition of FaZe Clan. The negotiation should be finalized in 2023.
The negotiation was unanimously approved by the companies’ boards and is expected to be completed in the fourth quarter of 2023. In the acquisition, FaZe will merge with GameSquare Merge and will be a subsidiary of the company.
The acquisition of @FazeClan brings together two complementary businesses to create one of the world’s leading content, media and entertainment companies focused on gaming, esports, and youth culture.
Read the Full Press Release
👉 https://t.co/gvbedZV9Bw pic.twitter.com/v8kkEh75kp
— GameSquare Holdings Inc. (@GSQHoldings) October 20, 2023
In a statement, GameSquare stated that the idea is to create the biggest brand when it comes to creating content, media and entertainment in games, electronic sports and youth culture. FaZe’s board will change. Thomas OliveiraBrazilian and founder of FaZe, will occupy the position of president of the organization. Richard Bengtson will be the CEO and Yousef Abdel Fattah was confirmed as the organization’s COO.
The Merger Plan will leave the GameSquare with 55% of shares in the combined company and the FaZe’s current shareholders will together own 45% of the company.
Conflict of interests
One question remained in the air with the news announced by GameSquare. The reason is simple: the company that will manage FaZe also owns Complexity. The two teams compete on the international stage of CS2which is prohibited by Valve on the Major circuit.
The rule says that teams and players must not have financial interests in any other team. This will cause a headache for GameSquare, which now has Complexity and FaZe on the scene.
The situation is delicate. Complexity invested in hiring Choose to reinforce the team in 2023. The American player is one of the region’s biggest names in competitive history. FaZe already has star players and multi-champions for the organization.
GameSquare has not yet commented on the situation at this time.
published in October 20, 2023