Venture Beat: “FaZe Clan said it will go public via a special purpose acquisition company (SPAC) at a $1 billion valuation to grow its combination of esports, merchandise sales, and social content.”

“A SPAC is a shell firm that raises money and goes public on a stock exchange with the purpose of merging with a private company to take it public. That helps reduce the time it takes to go public, in comparison to an initial public offering.”

“Under the deal, FaZe Clan will raise about $118 million through a private investment in public equity, or PIPE. FaZe did not disclose who its PIPE investors are. Meanwhile, the SPAC itself has $170 million, and some of that money could increase what FaZe Clan takes in cash proceeds. FaZe estimated it will have $275 million in cash upon closing.”