GameSquare Holdings, a company listed on Nasdaq and the owner of FaZe Esports, has agreed to issue stock representing approximately 30% of the expanded company, along with up to $50 million in cash, to acquire assets from a recently established British company. Surprisingly, none of the four assets mentioned in the deal are related to esports.
As per a announcement dated September 9th, GameSquare finalized an agreement on September 8th to acquire FanEngine Holdings Ltd., described as a technology and media asset consolidator facilitating the monetization of fans for sports, music, and entertainment IP owners through various means like gamification, brand integration, events, content, commerce, and experiences. Shareholders of FanEngine will receive around 30% of GameSquare at the time of closing, valued at approximately $15.9 million based on the closing price of $2.95 on September 4th. Additionally, there is a provision for up to an additional 10% of the company based on financial milestones, as well as a potential $50 million in cash linked to net income for 2027 and 2028. GameSquare also provided guidance for 2027, anticipating revenue exceeding $150 million, gross margin above 50%, and adjusted EBITDA surpassing $30 million.
The assets being acquired include Peaky Blinders, Simon’s Cat, The Two Robbies & Friends, and the 4Cast Media Platform. The first two are web3 projects utilizing television IP licensed from Banijay. The third asset is a football show created for a past World Cup event, while the fourth is a media venture supported by English cricketers. Notably, none of these assets are related to competitive gaming.
This move aligns with GameSquare’s evolving business strategy. The company’s esports revenue declined to $1.91 million in the first half of 2026 from $3.04 million in the previous year, marking a 37% decrease. However, total revenue more than doubled during the same period to $33.0 million, driven by growth in the marketing agency, talent agency, SaaS, and content segments. Esports now represents only 5.8% of GameSquare’s total revenue, down from 20% a year ago. Notably, the company divested Complexity Gaming in March 2024 and its stake in FaZe Media a year later, retaining FaZe Esports, which incurred a $0.3 million impairment in the fourth quarter of 2025 due to the departure of a signed player.
The seller in this transaction is a newly established entity with minimal operations beyond those necessary for facilitating the deal. FanEngine Holdings Ltd. was incorporated on June 26, 2026, in the UK, with limited filing history and no active person with significant control listed. The assets acquired from FanEngine were previously transferred from Anonymous Labs Limited and Credenza, Inc., both of which are part of the six seller securityholders involved in the agreement.
While the announcement sheds light on the assets being acquired, it leaves several questions unanswered. Details regarding FanEngine’s financials, the division of the 30% among seller securityholders, Banijay’s approval for asset assignments, and the impact on FaZe Esports remain undisclosed. The transaction is subject to stockholder approval and is anticipated to conclude in the fourth quarter.