Youth-focused online platform FaZe Clan is nearing a deal to combine with a special-purpose acquisition company and go public with a roughly $1bn valuation, people familiar with the matter said.

Based in Los Angeles, FaZe Clan markets itself as a leading online gaming company and a brand created by young people that targets millennials and Gen Z consumers. Its business includes esports, merchandise and digital content. The company’s website says FaZe Clan has a global reach to a community of roughly 350 million people across its social media platforms.