GameSquare Sells 25.5% Interest in FaZe Media

GameSquare Holdings has finalized the sale of a 25.5% interest in FaZe Media to an entity controlled by Richard “FaZe Banks” Bengston, the current CEO of FaZe Clan. The transaction, valued at $9.5 million USD, was executed at a price of $1.66 per share. This divestment is part of a broader strategic effort by GameSquare to realign the FaZe brand by increasing founder involvement and transitioning the business into a creator-led media and intellectual property entity.

Following this transaction and a prior 49% stake acquisition by Matt Kalish in May 2024, the total valuation of FaZe Media is estimated at approximately $40 million. Despite the sale, GameSquare retains a 25.5% interest in the subsidiary and maintains voting control over the transferred shares for a two-year period. Furthermore, FaZe Media will continue to be consolidated into GameSquare’s financial statements, with GameSquare providing ongoing corporate and agency services. Notably, GameSquare retains full ownership of all FaZe Esports properties.

The proceeds from this sale are earmarked for investment in growth initiatives and the support of working capital requirements. FaZe Media reported $30 million in revenue for the twelve-month period ending March 31, 2024. The agreement also includes an option for the purchaser to acquire up to 3,230,556 additional shares from GameSquare at fair market value, with a price floor set at $2 per share. This move underscores a shift toward decentralizing the media arm while keeping core esports assets under the parent company's control.