Lifestyle, media and esports company FaZe Holdings FAZE announced a renewal of a partnership with fast food giant McDonald’s Inc MCD Wednesday. Here’s a look at the partnership and how both companies could win.
What Happened: FaZe Holdings and McDonald’s USA, a unit of McDonald’s Inc, are renewing a partnership that began last year. The deal will see the two companies partner on “innovative ways to connect with the next generation of gamers.”
The renewal includes the advancement of campaigns from last year and several new initiatives.
The two companies will have a presence at gaming convention PAX West this weekend with activities for fans and a meet-and-greet with FaZe Clan members.
“McDonald’s has been an exceptional partner for FaZe Clan, as they understand the creativity and authenticity needed to engage with a younger, diverse audience,” FaZe Holdings CEO Lee Trink said.
Why It’s Important: The renewal includes building on successful campaigns from the last year, including a “Friendsgaming” livestream that was viewed by over 300,000 people and the “Spotlight” series that had over 2.4 million total views.
FaZe Clan was created for and by Gen Z and Millenials and has a strong presence with these age demographics. The company has a reach of over 500 million followers across social media platforms. FaZe also has a roster of well-known talent that includes Kyler Murray, LeBron James Jr (Bronny), Lil Yachty, Offset and Snoop Dogg.
FaZe, which recently went public via SPAC merger, ranked third for cross-platform actions among sports teams, trailing only the Los Angeles Lakers and Golden State Warriors, at the time of its merger announcement. FaZe counts 80% of its audience between the ages of 13 and 34, compared to 45% for the NBA, 37% for the NHL, 29% for the NFL and 24% for MLB.
For McDonald’s the partnership extends the company using celebrities to help boost its brand and offer limited time meals and programs.
FaZe Clan renews with McDonald’s as one of their key brand partners. The company signed a deal with DoorDash DASH in May and counts companies like DraftKings Inc DKNG, Nissan, Totino’s Pizza Rolls and MoonPay among its partners.
The company could see an increase in attention from major companies due to its sizable market of fans in the coveted age demographics of Gen Z and Millennials.
FaZe Clan said previously that it has lower monetization per user compared to other major sports leagues, something it hopes to fix going forward.
The news from FaZe Holdings comes as the company is mentioned as a leading short squeeze candidate with a low float and high short interest. The company saw its float size reduced by 92%. Data from Fintel showed 99.4% of the float short and a cost to borrow of 678.1%.
FAZE Price Action: FaZe shares are down 2.5% to $17.75 on Wednesday. Shares spiked earlier Wednesday, trading over $21 prior to the market open.
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