FaZe Clan founders Richard “FaZe Banks” Bengtson II, Yousef “FaZe Apex” Abdelfattah, Thomas “FaZe Temperrr” Alves De Oliveira might be looking to exit the company for good.
According to a report by The Esports Advocate, all major shareholders at FaZe Clan are looking to jump ship as 62.54% of the company’s shares are up for sale. Based on this number, only four of the existing holders would retain shares in FaZe Clan as the company gets a new majority owner.
FaZe Clan is perhaps one of the most popular organizations in the gaming and esports industry. Combining gaming with lifestyle content, FaZe Clan became home to prominent names in the streaming space. The rising popularity of the organization led to a market valuation of over $1 billion.
FaZe Clan went public in July 2022 and while it was a never seen deal in the esports industry, it would ultimately lead to the organization’s demise. FaZe Clan, like many organizations in the space, faced financial struggles. The organization was burning through its capital without any sign of recovery in sight. When these issues became public, FaZe’s stock dropped to its current value of $0.50. The company is currently valued at roughly $35.5 million.
FaZe Banks could be leaving FaZe Clan
FaZe Banks’ exit shouldn’t come as a surprise. Back in March, the organization’s founder was interviewed by Adin Ross and admitted he is working on his next project. Selling his shares at FaZe Clan would give him just enough capital to fund his next venture, which is likely to follow the early FaZe model.
FaZe’s case is notorious but is not by any means unique in the esports industry. In 2023, it has become normalized for organizations to go through massive layoffs. TSM recently announced it would be pausing its esports efforts, and it was rumored to be looking to sell its LCS slot. CLG no longer exists, the organization was recently acquired by NRG, who is taking over the League of Legends team.
Update – 05/11
After several reports went live about FaZe Clan’s situation, the company’s CEO, Lee Trink, clarified that the owners and founders are not planning on selling.
“If you bozos don’t know how to read an SEC document, give us a call, and we’ll speak slowly and walk you through it. I’ve never sold a share and have no plans to sell. Clickbait and weak “journalism” per usual,” Trink wrote as a response to The Esports Advocate.
The CEO then added that the SEC filling is a routine and required an update. Under the tweet, another person pointed out that the SEC filing clearly states the shares would be sold in the offering.