Today it was announced that the owners of the American esports organization FaZe Clan have expressed their intention to sell all of their assets on the stock market.
At this time, the organization is facing financial difficulties as its founders, bosses, and major investors may put their shares up for sale.
Approximately 62.54% of the currently circulating shares of FaZe Clan are likely to be put up for sale, which could result in the organization being transferred to a new majority owner.
In a filing with the U.S. Securities and Exchange Commission, FaZe Clan also proposed issuing 5.92 million new shares and reselling up to 46.98 million existing shares. Currently, approximately 51% of FaZe Clan's securities are available for sale.
Earlier in 2023, the organization was forced to lay off 20% of its employees, and Forbes business magazine even stated that FaZe Clan would not be able to survive until the end of this year.
The exact number of laid-off workers cannot be determined, but previously, FaZe Clan employed over 600 people, so approximately 120 individuals were affected by the downsizing.
Many fans and experts believe that these problems within FaZe Clan are associated with ineffective management of the company, which in recent years has evolved from just an esports club to a media company involved in content creation and social media promotion.
An analyst from the FaZe Clan organization also commented on the situation:
There's a mess going on with FaZe and their stocks/selling shares on the internet, including in the Russian-speaking segment. Disclaimer: The person who wrote the original news article in English either misunderstood the situation or lacks understanding of it. The correct interpretation is that FaZe shareholders/option holders are now ALLOWED to sell their shares because there was, so to speak, a trade lock on them. However, the person claims that all these shares WILL BE sold. There's a big difference, isn't there? PS. This is not because I'm part of FaZe, I just don't like it when such fake information spreads on the internet.
FaZe Clan has multiple rosters in different disciplines, but it's specifically the CS:GO roster that is currently showing good results, as they have qualified for the legends stage at the final major in this version of the game - BLAST Paris Major 2023!
Despite this, FaZe Clan remains one of the most popular and well-known esports organizations in the world, with a large fan base and successful teams in various disciplines. The question is whether the organization can overcome its financial problems and maintain its status in the industry.
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