GameSquare, FaZe Clan Parent Company, Divests From FaZe Media

The parent company of FaZe Clan, GameSquare, has divested its remaining stake in FaZe Media. 

The remaining stake was 25.5%. FaZe Media is a subsidiary that’s managed by FaZe Clan founder and current FaZe Media CEO Richard Bengston, also known as FaZe Banks. 

In other esports news, TALON Esports and Exit Lag recently agreed to a partnership. 

More About FaZe Media

Beginning April 1, FaZe Media will no longer be part of GameSquare’s financial statements. Those statements are expected to be released on April 16. 

FaZe Media was established in May 2024. It secured an $11 million investment from Matt Kalish, the president and co-founder of DraftKings North American.

In exchange for the $11 million investment, he received 49% of the company. 

Last year, FaZe Media entered into a $10 million transaction with GigaMoon Media, elevating the company’s valuation to over $39 million. 

Kalish is also involved in GigaMoon. 

GameSquare Divestiture Announcement 

In a press release discussing the divestiture, GameSquare mentioned a $2 million Letter of Credit from the Jones family, the owners of the Dallas Cowboys. 

The additional funds will be used to help a division that specializes in events, such as real-life experiences while leveraging talents and top brands. 

"2024 was a transformative year for GameSquare highlighted by the completion of the FaZe Clan acquisition, investments to our team and global capabilities, and the next-generation media platform we have created to drive cross selling opportunities and grow our market share," stated Justin Kenna, CEO of GameSquare. "As we look to 2025, today's announcements are important catalysts to optimize our business model and reach profitability in the coming quarters."

"We are excited to accelerate the growth of our experiences business," continued Mr. Kenna. "Over the past several quarters, we have seen growing demand to combine in game experiences with IRL events - developing strong engagement between brands, game publishers, and fans. We look forward to bringing some of the world's largest gaming events to fans."

McKenna also referred to the divestiture as a “win-win.” 

"Divesting FaZe Media is a win-win for GameSquare, FaZe Media and its founders. As we stated when we acquired FaZe Clan, for FaZe to be successful it needed to return to its roots with its founders at the helm to lead the brand and reestablish its authenticity. I am proud of what we have accomplished by rebooting the brand, reducing operating costs, and positioning FaZe Media for success as a standalone, creator lead business. I am also excited to retain 100% ownership of FaZe Esports, which has established itself as one of the world's most elite and highest winning esports organizations."

More on GameSquare 

GameSquare is an esports company based in Texas that owns Code Red Esports, StreamHatchet, Fourth Frame Studios, and more. It acquired FaZe Clan in February 2024. It also owned Complexity Gaming but sold it to a Jason Lake-led investor group.