Despite Luring Anthony Davis’ Interest, $40 Million Worth Gaming Company Suffers a Major Blow Within 1 Year

For many NBA stars, gaming is a way of chilling out. What was golf to the Legends of the NBA is what gaming is to the current crop of NBA players. In fact, some have even taken this hobby to another level by joining hands with pro-gaming companies. A year ago, the LA Lakers superstar Anthony Davis associated himself with an Esports company called FaZe Clan, by becoming part of their Nuke Squad. It created quite a buzz in the social media.

Though gaming culture is making deep inroads, not many Esports companies are reaping profits from it, and some have had a precipitous fall. Is FaZe Clan’s fall a cautionary tale or just a blip in the matrix? And will Jerry Jones be able to turn its fortune?

The Rise and the Fall of FaZe Clan.

FaZe Clan raised $40 million from venture capital and went public last year. Their net evaluation was $725 million. One time, their stock was priced at $24, which has dropped to the level of $0.20. This is not a penny stock of any pump-and-dump scheme. Yet it has had a 98% fall from its initial public offering. Please find the details in the below post.

Jerry Jones has acquired a 55% stake in FaZe Clan through his gaming venture called GameSquare. A year ago, Jerry Jones and John Goff came together to acquire a significant stake in GamesSquare. FaZe Clan has 8.57 million subscribers in its YouTube channel and has a significant following among gaming fans.

Jerry wants to encash this burgeoning opportunity with his $16 million investment in this Esports company. And Richard Bengston, who was one of the founding members of FaZe Clan, is also returning as the CEO of this company.

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Jerry Jones’ Dallas Cowboys are the America’s team. They enjoy this status despite their long NFL title drought.

The America’s Team

This season they are having some good games but with 3-2 record, a lot is left to be desired from them. What Jerry has with his NFL team is what exactly he would miss with his ESport division. Be it FaZe Clan or GameSquare, the flux that is there in this industry will always affect its talent and the fan following. Thus, loyalty on both fronts will always be in question.

With the arrival of big players in the Esports scene, can there be a sustainable model that would prevent a precipitous fall in Esports share prices? If not, this industry will always be in tumult from which the public will be better off staying away from it.

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