FaZe Reportedly Discussing Takeover Deals With Luminosity and Complexity Owners

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FaZe Reportedly Discussing Takeover Deals With Luminosity and Complexity Owners

Latest reports suggest FaZe Clan are discussing a takeover deal with the owners of North American CSGO organizations Luminosity and Complexity 

According to a report by Kevin Hitt, published in the Sports Business Journal today, FaZe have received acquisition proposals from GamesSquare and Enthusiast Gaming, the parent entities of Complexity and Luminosity.

FaZe Reportedly Discussing Takeover Deals

Credit: @JakeSucky

Why Is Faze Pursuing Takeover Deals?

FaZe's decision to go public on the Nasdaq via SPAC has brought significant attention to the organization in recent times. Unfortunately, the stock price faced a decline, dropping below $1.00 per share and remaining at that level for over 30 days. As a consequence, Nasdaq issued a delisting notice. In response, FaZe shareholders approved a reverse stock split for the outstanding shares of common stock during the 2023 Annual Meeting of Stockholders. The Esports Advocate notes that the split will be either 1-20 or 1-30 and will be executed on a date yet to be specified.

The possibility of Gamesquare entering acquisition talks with FaZe introduces potential conflicts in their respective esports portfolios. FaZe and Complexity currently manage teams competing in multiple titles, including Counter-Strike, Halo, and FIFA, among others.

The most significant area of concern pertains to Counter-Strike, leaving uncertainty regarding how the two brands will find a resolution. Notably, Complexity and FaZe hold prestigious positions as partner members of BLAST and Louvre Agreement members of ESL FACEIT Group.

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Enthusiast emerges as a viable alternative for FaZe, a gaming group located in Vancouver, with substantial support from Francesco Aquilini, owner of NHL's Vancouver Canucks and several other esports ventures, such as CDL Seattle Surge and OWL Vancouver Titans.

Any potential acquisition of FaZe, nevertheless, would undoubtedly lead to a conflict as they already possess the Atlanta FaZe, a fellow Call of Duty franchise. Worth mentioning is Luminosity's exit from the Counter-Strike space in 2019, having previously managed multiple Brazilian rosters. Currently, they are not affiliated with BLAST partnerships or the Louvre Agreement.