While GameSquare only plans to release the exact details on the FaZe Media divestiture when the company announces Q4 2024 financial results on April 16, The Esports Advocate expects to learn that the sale of the remaining 25.5% stake is related to an expedited conversion of the M convertible note transaction with Gigamoon Media—which was […]
While GameSquare only plans to release the exact details on the FaZe Media divestiture when the company announces Q4 2024 financial results on April 16, The Esports Advocate expects to learn that the sale of the remaining 25.5% stake is related to an expedited conversion of the M convertible note transaction with Gigamoon Media—which was originally scheduled to convert on Dec. 31, 2025, into either GameSquare’s common stock at a conversion price of .50 per share or 5.725M shares of FaZe Media Series A-1 Preferred Stock. The conversion into FaZe Media shares would transfer majority ownership to Matt Kalish, with a controlling interest of 74.5%.
In a further show of financial confidence, GameSquare also announced Monday a M Letter of Credit extended by the Jones Family—led by Dallas Cowboys owner Jerry Jones. The facility, which carries a 10% per annum interest rate on any outstanding principal drawn without a prepayment penalty, is designed to support early financial commitments such as space reservations and other operational expenses for its burgeoning events business.
FaZe Media was established in May 2024 as a dedicated “operating subsidiary to consolidate the remaining FaZe creator talent and non-esports assets into “a creator-led IP and internet media company.” Last year, GameSquare secured an M investment from Matt Kalish—president and co-founder of DraftKings North America and FaZe Media Board Member—for a 49% stake in FaZe Media, sold a 25.5% interest for .5M to an entity controlled by FaZe Banks, and entered into a M convertible note transaction with Gigamoon Media, an investment entity controlled by Matt Kalish. These moves reflect GameSquare’s commitment to returning creative control to FaZe’s founders and optimizing the brand’s operational focus.
Publicly traded esports and gaming company GameSquare (NASDAQ:GAME) announced Monday that it has divested its remaining 25.5% stake in FaZe Media, an independent subsidiary managed by FaZe Clan Founder and current FaZe Media CEO Richard “FaZe Banks” Bengston. Details of the divestiture—part of GameSquare’s broader strategy to streamline operations and strengthen its balance sheet—will be published when the company reports its Q4 2024 financial results on April 16, 2025. Effective April 1, FaZe Media will no longer be consolidated in GameSquare’s financial statements. GameSquare will continue to maintain 100% ownership of FaZe Clan Esports.
Looking ahead, GameSquare is set to launch a new division specializing in talent-led, brand-owned events aimed at delivering immersive in-real-life experiences. The division will leverage partnerships with top-tier brands, gaming communities, and major U.S. festivals to create innovative, culturally relevant events. Additionally, the company is rolling out a collegiate esports initiative designed to foster community engagement on university campuses across North America through competitive tournaments, a proprietary software platform, and the strategic use of its owned IP—the company owns several creation content studios and marketing divisions.
“2024 was a transformative year for GameSquare, highlighted by the completion of the FaZe Clan acquisition, investments to our team and global capabilities, and the next-generation media platform we have created to drive cross-selling opportunities and grow our market share,” said Justin Kenna, CEO of GameSquare, in a release. “As we look to 2025, today’s announcements are important catalysts to optimize our business model and reach profitability in the coming quarters.”
