After raising $38 million from private equity firm Riverstone Holdings and leading investment manager Highfields Capital Management, the famed video gaming scene in LA is going public.
The four-year-old group FaZe Clan announced Thursday it will merge with iBank Limited, a publicly traded company incorporated in the United Kingdom. The structure of the merger allows any FaZe fans to buy shares of the new company, dubbed Bio-Gaming Global Ventures.
The new entity includes thousands of fans that collectively own FaZe Clan’s assets. Their role is to operate the company following the merger and operate community “house rules,” which could ultimately lead to an even larger amount of wealth.
The announcement came after a New York Times report revealed the group had raised about $250 million in venture capital funding, which it recently used to buy the eSports firm Echo Fox. The “killer app” of the deal was a massive fan base, among whom FaZe Clan has grown to a whopping 12 million subscribers. The group says it has 1.5 million players.
The merger will allow FaZe to start a new operating structure, with the hope that it will grow and add new offerings to attract new members.
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