What is Faze Clan?
Faze Clan is a digital and media platform embedded in gaming and youth culture and reimagining traditional entertainment for the next generation. It was founded in 2010 by a group of children on the internet.
Faze Clan was created by Gen Z and Millennials and today functions across multiple verticals with transformative content, tier-one brand partnerships, a collective of notable talent, and fashion and consumer products.
Faze Clan has reached over 500 million followers globally across social platforms. It delivers a broad variety of entertainment covering video blogs, lifestyle and branded content, gaming highlights, and live streams of highly competitive tournaments.
Faze Clan Stock comprises more than 85 influential personalities, engaging content creators, esports professionals, world-class gamers, and a mix of talent who go beyond the gaming world. Its gaming division comprises 11 competitive esports teams with over 30 world championships.
Faze Clan is well-known for evading a pure focus on competitive gaming: but diversifying and expanding into a lifestyle and gaming brand with a presence in mainstream pop culture. Faze Clan has partnered with most companies, like Verizon Communications, McDonald’s, and Doritos, to target millennial and Gen Z consumers. Over 350 million people follow the group through its social media platforms and network of content creators and personalities.
This guide will discuss the Faze Clan Stock merger, Faze Clan Stock price, Faze Clan Stock prediction, and how to buy Faze Clan Stock.
Faze Clan Stock Merger
Faze Clan proposed a business combination with B. Riley Financial, and some days ago, the stockholders of B. Riley Financial approved the proposal. The business combination closes on July 19, 2022, following the satisfaction of all closing conditions. At the time of the business combination, there was an agreement that the company would be renamed Faze Holdings Inc., and its shares of common stock and warrants are expected to begin trading on July 20, 2022, on Nasdaq under the new ticker symbols “FAZE” and “FAZEW,” respectively.
BRPM is a unique purpose acquisition company formed to effect business combinations with one or more businesses, capital stock exchange, stock purchase, and reorganization. BRPM started trading on the NASDAQ on February 19, 2021, after its initial public offering. Its Class A common stock shares, and units, trade under the ticker symbols BRPM, BRPMU, and BRPMW, respectively.
BRPM is sponsored by an affiliate of B. Riley Financial, Inc. (Nasdaq: RILY). BRPM is a Special Purpose Acquisition Company, a type of shell company listed on a stock exchange that is used to obtain a private company and bring it public without going through an Initial Public Offering.
Faze Clan Stock Price
Faze Clan stock price, one of the significant esports teams in the world, went public on the stock exchange at a valuation of nearly AUD 1 billion. However, in the 24 hours since its unveiling, the Faze Clan stock dropped over 25%, closing the day at USD 9.36 a share on the NASDAQ.
Esports teams have made a big squelch in recent years as profitable businesses, and almost none have succeeded, including Faze Clan. Faze Clan total funding is $40m.
Faze Clan Stock Price Prediction
The merger with BRPM valued Faze Clan Stock at an equity value of $987 million. Faze Clan looks forward to posting revenues of $91 million in 2022 and awaits them to rise to $651 million by 2025. Faze Clan Stock Price forecasts a 90 percent revenue growth CAGR between 2021 and 2025.
Based on the forecasts, Faze Clan Stock is valued at a 2022 price-to-sales multiple of around 11x and a 2025 price-to-sales multiple of 1.5x. Faze Clan also experiences loss-making and expects to turn adjusted EBITDA positive in 2023.
In 2025, Faze Clan awaits its adjusted EBITDA to rise to $131 million. That said, markets have been cautious of forecasts provided during the SPAC mergers as many companies have missed these, sometimes for reasons beyond their control. Faze Clan intends to monetize the users through multiple platforms, including brand sponsorships, gaming, branded consumer products, and ad revenues through content. It also plans to replicate the strategy in international markets.
In summary, Faze Clan stock will face the heat from the continued sell-off in growth stocks. Loss-making companies have been out of favor with markets, and even Faze Clan Stock will have to cope with the poor macros as it starts its journey as a publicly traded company.
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Where and How to Buy Faze Clan Stock
Immediately after the merge is complete, you can buy Faze Clan stock shares through any online or traditional broker. The Faze Clan stock is expected to trade under the new ticker symbol “FAZE” on the Nasdaq, but if you want to invest right now, you can buy the BRPM SPAC’s stock on the Nasdaq. To buy Faze Clan Stock shares, you have to:
- Find a platform that fits you by comparing share trading platforms.
- Complete an application with your details and open a brokerage account
- Fund your account and confirm your payment details.
- Find the Faze Clan stock by name or ticker symbol and study it before deciding if it’s a good investment for you.
- You can decide to buy the number of shares you want with a market order, or use a limit order to delay your buying until the stock reaches the desired price.
Is Faze Clan Stock a Good Buy Now?
Faze Clan stock started trading today, expanded into the e-sports scene, and offered its merchandise way for followers. In the past 12 years, the group has seen incredible evolution, with above 500 million followers.
Faze Clan intends to use the finances from its SPAC merger to power its future growth plans, which include expanding its business to new areas, such as gambling, fan clubs, and other potential revenue sources.
Faze Clan also has a proposed new form of interest that makes use of blockchain technology. The company is hopeful that this would allow it to reach fans without the need for social media and introduce new ways to generate money.
Faze Clan plans on providing an interest in play-to-earn games that could have fans earn non-fungible tokens connected to the company. It also set up a Faze Clan Academy for news streamers to learn appropriate ways to communicate with their audiences in order to avoid controversy, including crypto scams and slurs.
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