How Many Shares of FaZe Exist? Understanding FaZe Clan’s Stock Structure
The question of how many shares of FaZe exist is crucial for understanding the ownership and financial health of this once-dominant esports and influencer organization. As of July 31, 2023, FaZe Clan had 76,329,689 issued and outstanding shares of common stock. Additionally, there were 11,536,121 shares reserved for issuance pursuant to FaZe Clan’s outstanding stock options. It’s important to note that these figures can fluctuate due to various corporate actions such as stock options being exercised, new issuances, or share buybacks. This information is primarily for historical purposes, as FaZe Clan has since been acquired by GameSquare.
Understanding the total share count is just one piece of the puzzle. The ownership structure, recent financial struggles, and the acquisition by GameSquare have all contributed to a complex situation for investors. Let’s delve deeper into the stock-related aspects of FaZe Clan and examine what the future holds.
The Shifting Landscape of FaZe Clan Stock
FaZe Clan’s journey as a publicly traded company has been turbulent. After a period of explosive growth and recognition, the company faced significant financial challenges, ultimately leading to its acquisition by GameSquare. This change has drastically impacted the value and future of FaZe shares.
Acquisition by GameSquare
The acquisition by GameSquare marks a significant turning point for FaZe Clan. This all-stock deal saw the struggling gaming influencer group being absorbed by a gaming analytics and esports brand company. Jerry Jones, owner of the Dallas Cowboys, is one of the major investors in GameSquare, adding another layer of complexity to the transition.
The acquisition was a response to FaZe’s mounting losses and plummeting stock price, which saw it enter what is commonly referred to as “penny-stock territory.” This term is used to describe shares that trade at a very low price, usually below $5 per share, indicating significant financial struggles within the company.
Financial Struggles and the Stock Price
The primary reason behind FaZe Clan’s financial difficulties was the company’s inability to manage its expenditures. In 2021, FaZe’s operating expenses were $37.1 million, but by 2022, they ballooned to $59.4 million, resulting in a $53.2 million loss for that year. This unsustainable level of spending, combined with a default on a significant portion of the $100 million that was supposed to be delivered as liquid capital, caused the stock price to plummet.
As of October 31, 2023, FaZe Holdings had a market cap or net worth of $12.51 million, a staggering 95.61% decrease in one year. Even more recently, as of November 10, 2023, its market cap was $13.74 million, reflecting a -92.93% decrease in one year. This significant drop illustrates the financial turmoil the company was experiencing before its acquisition.
Key Players in FaZe Clan Ownership
Before the acquisition, ownership of FaZe Clan was distributed among various stakeholders, including institutional investors, insiders, and retail investors. Key figures and entities that held significant portions of FaZe Clan shares include:
- Institutional Shareholders: Holding 22.79% of the shares. This category includes entities like B. Riley Financial, Inc., JW Asset Management, LLC, Bellecapital International Ltd., Boothbay Fund Management, Llc, Vanguard Group Inc, Geode Capital Management, Llc, VEXMX – Vanguard Extended Market Index Fund Investor Shares, BlackRock Inc., Caz Investments Lp, and Northern Trust Corp.
- FaZe Holdings Insiders: Owning 52.16% of the shares. These include individuals who are part of the company’s management and founding teams.
- Retail Investors: Accounting for 25.05% of the shares. This category includes individual investors who bought the stock through brokerage accounts.
- Nick Lewin: The largest individual shareholder, owning 17.70 million shares, representing 23.19% of the company.
The transition to GameSquare ownership will result in changes to the shareholder structure, as the acquisition was an all-stock deal. The specifics of how FaZe shareholders will be impacted by this deal are crucial details that need to be monitored.
Future of FaZe Clan Stock
Given the acquisition by GameSquare, the trading ticker FAZE will likely be replaced by GAME’s ticker. The future for former FAZE shareholders remains uncertain, and will depend on the agreement terms reached between the two organizations. This acquisition was a way for FaZe to avoid further decline after it experienced significant losses due to mismanagement and an inability to manage expenses.
The appointment of Richard Bengston as CEO signals a new direction for FaZe Clan under GameSquare. This new leadership will play a critical role in guiding the future of the brand and its relationship with its fans and the wider esports community.
Frequently Asked Questions (FAQs)
1. Can I still buy FaZe Clan stock?
No, as FaZe Clan has been acquired by GameSquare in an all-stock deal. The ticker FAZE is no longer in the stock markets as a result.
2. What is the new ticker for the company formerly known as FaZe Clan?
The ticker for the new parent company is GAME which is GameSquare’s trading ticker.
3. What was FaZe Holding’s Net Worth as of October 31, 2023?
FaZe Holdings had a market cap or net worth of $12.51 million as of October 31, 2023.
4. Who are the largest shareholders of FaZe Clan?
Prior to the acquisition, the largest shareholders included B. Riley Financial, Inc., JW Asset Management, LLC, and Nick Lewin with the largest individual shareholding.
5. Why did FaZe Clan stock collapse?
The stock collapsed due to mismanagement, excessive spending, default on investments, and general financial instability.
6. Was FaZe Clan considered a penny stock?
Yes, FaZe Clan was operating in penny-stock territory before being acquired by GameSquare.
7. Is FaZe stock a good investment?
Based on recent market analysis from late 2023, FAZE was considered a poor investment. Historical analysis of this is primarily for educational purposes as the stock no longer exists.
8. Does FaZe stock pay dividends?
No, the current TTM dividend payout for FaZe Holdings (FAZE) as of October 31, 2023 was $0.00. It has never paid dividends.
9. Who is the new CEO of FaZe?
Richard Bengston has been named as the new CEO following the acquisition by GameSquare.
10. How much did FaZe Clan lose in operations last year?
FaZe Clan reported a $48.7 million loss from operations the previous year.
11. Will FaZe be delisted?
FaZe was previously at risk of being delisted but secured a 180-day extension from NASDAQ to comply with listing requirements. However, this issue is now no longer relevant as FAZE is not currently listed.
12. How many shares of FaZe were outstanding as of July 2023?
As of July 31, 2023, there were 76,329,689 issued and outstanding shares of FaZe Clan common stock.
13. How many shares were reserved for stock options?
There were 11,536,121 shares reserved for issuance pursuant to FaZe Clan’s outstanding stock options as of July 2023.
14. What company acquired FaZe Clan?
GameSquare, a gaming analytics and esports brand company, acquired FaZe Clan.
15. What was the percentage decrease in FaZe’s market cap in one year as of November 2023?
FaZe’s market cap decreased by -92.93% in one year as of November 10, 2023.
Understanding the historical stock structure of FaZe Clan and its current status following the acquisition by GameSquare provides valuable insights into the complex world of esports and influencer business. While the FaZe ticker is no longer on the markets, this analysis is still relevant for understanding its journey and the future of the influencer-based publicly traded industry.