Despite Amassing $725 Million, FaZe Clan’s Nasdaq Debut Looks Likely to Spell Trouble

Immensely popular and renowned eSports organization FaZe Clan has finally begun operating as a public company. The content creator collective recently started its run on the NASDAQ stock exchange.

However, contrary to previously made self-projections, FaZe Clan opened with a valuation of $725 million. It’s lower than the figure of $1 billion from when the merger with B. Riley Principal 150 Merger Corp was announced last year in October. Adding to that, the company saw a 30 percent drop in its stock on the first day itself. This could be worrisome for its multiple new investors.

FaZe Clan stock falls by 30 percent after going public on NASDAQ

In case anyone missed to keep track, the highly successful eSports organization recently completed its merger with B. Riley Principal 150 Merger Corp. It was approved by shareholders and, as a result, the entity was ready to go public.

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The company was first founded in the year 2010 by three original members. Since then, it has grown and expanded into a larger brand. The extent of its popularity can be understood by the fact that many global entertainments and sports personalities are associated with Faze as investors. Some of them, like Anthony Davis, are even part of its roster for various gaming squads.

Now that it has commenced operating as a public company, things are not looking as amazing as some may have thought, especially regarding FaZe Clan‘s initial performance on the Nasdaq stock exchange. Upon its debut as an IPO firm, $FaZe saw a huge drop in its stock price by almost 30 percent.

Moreover, Billy Studholme, who is the Talent Manager at Turopium/Kairos Group, shared a piece of concerning news over FaZe going public. On his LinkedIn account, Billy wrote about how early impressions are not looking positive for the eSports entity going forward. Some of the employees from Bloomberg have called it “a s***show”, according to the LinkedIn post.

He mentioned that the biggest factor that might result in its failure is the initial valuation itself. Compared to early predictions calling for a $1 billion amount, the actual value was revealed to be $725 million.

Another reason that might make things even worse for the organization is its association with banks being at the “centre of some egregious scandals (crypto scams etc). All is magnified when share price is paramount.”

Billy also added that FaZe Clan might not witness success at all after going public. “And if FaZe fails, whatever ‘fail’ means, that’ll ripple through the creator economy, gaming, and most damagingly, esports,” he said.

Meanwhile, fans of the clan also reacted with disappointment to the falling stock price of their favorite eSports entity. Especially those who just became its investors.

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