FaZe (NASDAQ:FAZE) stock is rocketing higher on Friday as the gaming company is being acquired by GameSquare (NASDAQ:GAME).
This deal will have GameSquare acquiring FAZE stock in an all-stock transaction. When the merger goes into effect, each issued and outstanding share of FAZE stock will be converted “into the right to receive 0.13091 shares of GameSquare’s common stock.”
The boards at FaZe and GameSquare have both given their unanimous support to the merger deal. This has the two companies expecting the deal to close in the fourth quarter of 2023. However, the deal first has to get approval from regulators and shareholders.
Christoph Pachler, interim CEO of FaZe, said the following about the transaction:
“Joining forces with GameSquare creates greater scale and exciting opportunities in the emerging market for gaming and youth culture […] The strength of the FaZe brand and GameSquare’s infrastructure are a powerful combination that will enable FaZe shareholders to benefit from the combined company’s long-term value creation potential.”
FAZE Stock Movement on Friday
With news of the combination, shares of FAZE stock are seeing incredibly heavy trading on Friday. As of this writing, more than 9 million shares have changed hands. To put that in perspective, the company’s daily average trading volume is closer to 2 million shares.
FAZE stock is up 39.7% as of Friday morning while shares of GAME stock are down 10.6%.
Investors on the lookout for more of the most recent stock market stories will want to stick around!
We’re covering all of the hottest stock market news that traders need to know about on Friday! That includes the biggest pre-market stock movers this morning, the latest news concerning a potential stock market crash and more. All of that news will be ready to go at the links below!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
