![]() ![]() As of June, FaZe had around 54 esports and gaming professionals across its various teams. Kenna said he sees an opportunity to bring in additional revenue from the brand's other talent. In 2021, the same content creator drove roughly 22% of its revenue. ![]() In 2022, one creator accounted for roughly 18% of FaZe's total revenue, per public filings. GameSquare will also need to diversify the number of creators that contribute to FaZe's bottom line. The company owns subsidiaries in merchandising, influencer marketing, and streaming analytics. Kenna aims to diversify FaZe's business by monetizing its intellectual property through licensing deals and consumer products, and by tapping into existing GameSquare brand partners. The company has relied heavily on brand sponsorships and ad-funded content to make money despite its efforts to grow revenue in areas like esports competitions and FaZe-branded products. Part of FaZe's troubles stem from a lack of revenue diversification. FaZe's over-reliance on a few influencers has led to big revenue swings GameSquare wrote in a press release announcing its FaZe deal that it expects to record more than $18 million in savings by cutting "duplicate corporate costs" and other expenses following a merger. Amid these woes, the company fired CEO Lee Trink in September. FaZe laid off 20% of its staff at the start of this year as it sought "increased financial discipline." Nasdaq recently threatened to delist the company after its stock price dipped below $1. Its revenue dropped 30% in the first half of 2023 compared to the same period in 2022, per company filings. In response to the deal announcement on October 20, Bengston posted on X, formerly Twitter, that he was "excited to have the keys again" and was "praying these partners are different."Įven with the endorsement of talent, the path forward for revamping FaZe's business will be challenging. "These are the guys that created this brand and this audience in the first place." "It was actually extremely important to me that we had the backing and support of the founders, and that we got on the same page," Kenna told Insider. GameSquare CEO Justin Kenna, a former CFO at FaZe, said he knew he needed buy-in from FaZe talent for the deal to move forward. He would oversee the brand alongside Thomas "FaZe Temperrr" Oliveira, FaZe's proposed president, and Yousef "FaZe Apex" Abdelfattah, set to become FaZe's COO. After the deal closes, the company plans to make him the CEO of FaZe. Rather than cut off FaZe's in-house critics, GameSquare is instead putting Bengtson in charge of the company. In April, influencer Richard "FaZe Banks" Bengtson tweeted his frustrations about the esports brand he helped launch, writing, "Idk what all these corporate fucks think they're doing," and requesting that they "give us our brand back." Have an account? Log in.īeginning in late 2022, Nordan "FaZe Rain" Shat posted a series of YouTube videos criticizing FaZe's leadership and spending decisions. This story is available exclusively to InsiderĪnd start reading now. Account icon An icon in the shape of a person's head and shoulders. ![]()
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