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Shareholders of GameSquare Holdings, the parent company of Complexity Gaming, have officially approved the proposed merger with FaZe Clan.
The merger, valued at approximately US$17 million according to numerous sources, is expected to close shortly pending standard closing conditions.
Jason Lake, CEO of Complexity, acknowledged the potential conflict of interest between Complexity and FaZe in a statement.
He assured that steps would be taken to ensure fair play despite any conflicts that may arise from the merger.
The acquisition of FaZe Clan by GameSquare was announced late last year, following financial struggles faced by FaZe Clan after a challenging public listing.
The deal was initially expected to close in the fourth quarter of 2023 but experienced delays.
Both GameSquare and FaZe Clan have expressed confidence that the merger will be finalized soon.
Prior to the shareholder vote, GameSquare’s Board of Directors unanimously recommended approval of the acquisition.
FaZe Clan shareholders had already voted in favour of the merger in a meeting held on February 16, with 91% approval.
The merger between GameSquare and FaZe Clan marks a significant development in the esports industry, as consolidation becomes increasingly common to manage costs and navigate market changes.
However, concerns about conflicts of interest have been raised, particularly regarding the competitive integrity of Counter-Strike tournaments where both Complexity and FaZe Clan participate, such as the BLAST Premier Series and ESL Pro League.
Jason Lake had previously expressed interest in reacquiring Complexity from GameSquare, potentially offering a solution to mitigate conflicts of interest.
Meanwhile, tournament organizers like ESL and BLAST are closely monitoring the implications of the merger on competitive integrity within the esports scene.
