FaZe Clan, the beleaguered gaming influencer company, and gaming analytics and esports brand Gamesquare have announced that its stockholders have voted to approve the two companies’ proposed merger.

GameSquare and FaZe have stated that they anticipate the transaction closing shortly, “subject to the satisfaction of customary closing conditions.”

According to a Bloomberg report, the all-stock deal is worth around $17 million, a significant decline from the company’s $725-million valuation at the time of its special purpose acquisition company (SPAC) merger in July 2022 – a figure significantly less than the $1-billion figure that was suggested the year before.

According to the Bloomberg report, FaZe investors will receive around 0.14 GameSquare shares for every FaZe share they have.

GameSquare reportedly had a net loss of $8.45 million on sales of $19.2 million in the first half of 2023 in what was a difficult year for esports.

Since the SPAC made it publicly traded on the Nasdaq exchange, Faze Clan posted a $28.4 million loss through the first half of 2023, with a $48.7 million loss from operations last year, culminating in the firing of chief executive Lee Trink last year.

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The acquisition will also involve Faze leadership going back to its founders, such as Richard Bengtson serving as chief executive, Thomas Oliveira as president, and Yousef Abdelfattah as chief operating officer, with the Los Angeles-based gaming firm having been founded by teenage boys who became famous playing Call of Duty on YouTube.

After efforts to diversify received mixed results, Faze Clan will operate as an independent division of Gamesquare to re-engage with its core fanbase.

The family of Dallas Cowboys owner Jerry Jones and Goff Capital, GameSquare’s largest investors, have agreed to commit $10 million as part of the deal, with Faze expecting to save about $18 million in cost savings.

In April last year, Bengtson spoke out on social media regarding FaZe’s direction, saying: “Give us our brand back, you stole it in the first place, it goes to zero otherwise. You have no idea what FaZe is.”