FaZe Clan, an esports and online entertainment company, began trading on Nasdaq on Wednesday after completing a merger with a special purpose acquisition company (SPAC) worth US$725mln.
The group is made up of 93 members, mainly esports competitors and content creators, plus some celebrities like Snoop Dogg, and was founded in 2010 by a group of gamers posting on YouTube.
Across multiple content platforms, FaZe Clan’s creators have a combined following of over 500mln and is ranked by Forbes as the fourth most valuable esports company.
Trading under the ticker FAZE, the shares sank on their debut, finishing nearly 25% down at US$9.9 from US$13.1.
Despite the current economic downturn and the possibility of SPAC regulation, FaZe chief executive Lee Trink believes a SPAC was the right decision for the company, CNBC reported.
“I understand why other companies have been criticised for going public via the SPAC Vehicle. But for us, it really fits,” said Trink.
FaZe announced the idea for a SPAC merger last October, with a deal at the time marked for US$1bn.