FaZe Clan is now a publicly traded company, but its value is already dropping.
The organisation of esports professionals and gaming influencers has begun trading on the Nasdaq to become one of only a few esports companies on the market.
However, when FaZe agreed last October to merge with acquisition company B. Riley Principal 150 Merger Corp., it was valued at close to $1bn. Now that value is closer to $716m.
That's based on 72.5m shares outstanding at $9.88, as reported by Bloomberg.
The group boasts over 500m global followers across social media and has a roster of 93 "influential personalities" from gaming, esports, and beyond, of which only one is a woman.
Daniel Shribman, B. Riley's chief investment officer, sees FaZe as "a brand that speaks to today's youth culture like Nike spoke to yesterday's."
"We've been preparing for over a year to become a public company," said CEO Lee Trink. "In the time that we've announced our merger, we've put together a stellar management team and a world class board of directors to oversee the company. FaZe Clan has a professional management team and a public company board to run the business, but as a brand at the forefront of youth culture, it's critical to include the perspectives of Gen Z and our people who have an innate knowledge of the internet community and the brand."
Bloomberg reports of internal volatility at the organisation, with one former employee describing it as a "shit-show" of kids with no experience in business or branding calling the shots.
"It's edgy, deep-in-youth-culture, deep-in-gaming-culture," said Shribman. "That's what makes it what it is. If there were no controversies, that would be pretty boring."
Trink's next move will be investing in Web3 - he is "unquestionably" pushing into crypto despite its reputation.
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