TALKESPORT

NASDAQ has released a deficiency notice aimed at FaZe Clan as their listed stock falls below a dollar.

One of the biggest gaming organizations in the world, FaZe Clan IPO’d at a billion dollars recently, however, following a cash flow meltdown, the stock prices have plummeted from an all-time high of $20 dollars to $0.89 risking a delist from NASQAD stock exchange.

Upon investigating the downfall of the stock, a simple reason to explain it would be FaZe Clan’s expenses surpassing their profits and as a result, the stock has fallen below a dollar which doesn’t bode well with NASDAQ policies which state that any company with the stock below a dollar for 30 consecutive days risks a deficiency notice.

According to Nasdaq, “If a company trades for 30 consecutive business days below the $1.00 minimum closing bid price requirement, Nasdaq will send a deficiency notice to the company, advising that it has been afforded a ‘compliance period’ of 180 calendar days to regain compliance with the applicable requirements.

“If a company is unable to resolve its bid price deficiency during the applicable compliance period, Nasdaq Staff will issue a delisting letter,” Nasdaq adds. At this point, the company can request a hearing, which will pause the delisting, in order to make an appeal to the exchange.

The stock price fell below a dollar and there are no signs of it surpassing the dollar mark. However, a recent deal between SPAC and FaZe Clan members might see the stock price get positively impacted and as result, they might evade it this time around, however, their finances would require better management in comparison with the last financial year to avoid similar debacles in the future.

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NetEase Inc, a Chinese games publisher, announced on Wednesday that it has rejected a proposal from Activision Blizzard Inc to extend their partnership for six months. The U.S. game developer is currently seeking a new partner.

NetEase stated that the proposal was “commercially illogical” and accused the U.S. firm of “seeking a divorce but still remaining attached.” This is a rare public display of acrimony between the two gaming giants.

In November, Blizzard announced that it would end its 14-year partnership with NetEase, causing shockwaves across the industry as the partnership was widely seen as one of the most lucrative in video games.

The companies were unable to agree on key terms of cooperation and as a result, popular games such as ‘World of Warcraft’ and ‘Overwatch’ will not be available in China, the world’s largest gaming market, from January 23rd.

NetEase also mentioned that Blizzard reached out last week with an offer to extend the partnership for six months, but also made it clear that it would not stop negotiating with other potential partners.

Shortly after Blizzard and NetEase first announced they would be going their separate ways last year, NetEase president of global investment and partnerships Simon Zhu said there was more to the falling out between the two companies than meets the eye.

“One day, when what has happened behind the scene[s] could be told, developers and gamers will have a whole new level understanding of how much damage a jerk can make,” Zhu said.

In order to prevent Chinese WoW players from losing decades worth of progress in the MMORPG, Blizzard announced it will roll out a new feature that will allow players to download their characters for safekeeping ahead of the game’s upcoming shut down in the region. Warcraft general manager John Hight said “everyone will be able to keep their game history and memory in their own hands,” until a new partner in China is found.

Though the falling out between NetEase and Blizzard has been incredibly public, the two companies technically still work together in some capacity. NetEase co-developed Diablo Immortal alongside Blizzard, which according to Activision Blizzard’s Q3 2022 financial results, has sat among the top-10 grossing mobile games in China since its July 2022 launch. Development on the free-to-play mobile game will continue thanks to a separate agreement between the two companies.

NetEase was reportedly also working on a mobile Warcraft MMO for multiple years, only to have the project canceled when Blizzard and NetEase could not come to financial terms.

NetEase has declined a six-month extension of its publishing agreement with Blizzard, citing unequal and unfair treatment.

It was announced late last year that Blizzard had elected not to renew its deal with NetEase, which for over 14 years has published and localized Blizzard titles for the Chinese market. Should the two companies fail to come to terms and a new publishing partner not be found before January 23, all Blizzard titles in the region, including games like World of Warcraft, Overwatch 2, Hearthstone, and Starcraft II, will see their services shut down on the same date.

That fate is looking more and more likely following the news that Blizzard offered NetEase a six-month deal to further extend their publishing agreement and avoid disruption to Blizzard’s services, only for the deal to be declined. The failure between the two parties to come to a deal has prompted a new round of finger-pointing between the two companies.

“It is a pity that NetEase is not willing to extend services of our game for another six months on the basis of existing terms as we look for a new partner,” Blizzard China said on a post on Chinese blogging site Weibo (via Reuters).

NetEase has since fired back with a statement of their own, claiming that Blizzard was seeking three-year deals with other companies even as it offered NetEase a six-month deal.

“Considering the unequal, unfair, and other conditions attached to the cooperation, the two parties failed to reach an agreement in the end,” a NetEase statement (transcribed via Google Translate) reads. “We believe that Blizzard’s proposal–including today’s sudden statement–is outrageous, inappropriate, and not in line with business logic.”

Shortly after Blizzard and NetEase first announced they would be going their separate ways last year, NetEase president of global investment and partnerships Simon Zhu said there was more to the falling out between the two companies than meets the eye.

“One day, when what has happened behind the scene[s] could be told, developers and gamers will have a whole new level understanding of how much damage a jerk can make,” Zhu said.

In order to prevent Chinese WoW players from losing decades worth of progress in the MMORPG, Blizzard announced it will roll out a new feature that will allow players to download their characters for safekeeping ahead of the game’s upcoming shut down in the region. Warcraft general manager John Hight said “everyone will be able to keep their game history and memory in their own hands,” until a new partner in China is found.

Though the falling out between NetEase and Blizzard has been incredibly public, the two companies technically still work together in some capacity. NetEase co-developed Diablo Immortal alongside Blizzard, which according to Activision Blizzard’s Q3 2022 financial results, has sat among the top-10 grossing mobile games in China since its July 2022 launch. Development on the free-to-play mobile game will continue thanks to a separate agreement between the two companies.

NetEase was reportedly also working on a mobile Warcraft MMO for multiple years, only to have the project canceled when Blizzard and NetEase could not come to financial terms.