Nazara Technologies Limited, a gaming and sports media company, has increased its equity stake in its subsidiary, Absolute Sports Private Limited, to 81.94%. This was part of an agreement under the Share Purchase Agreements (SPAs) dated September 18, 2024. As of 10:05 AM, Nazara Technologies’ shares were trading at ₹1,001.00, showing a 17.89% increase year-to-date.
On December 26, 2024, Nazara acquired 21,830 equity shares of Absolute Sports from the founding shareholders, Porush Jain and Srinivas Cuddapah. This accounts for a 10.26% stake in the company. The transaction is the first tranche of a larger acquisition plan outlined in the SPAs, which involves purchasing a total 19.35% equity stake in Absolute Sports.
The total value of the acquisition stands at ₹145.47 crore. For the current phase, Nazara has paid ₹72.73 crore in cash. The remaining amount will be settled in the second phase as per the SPA terms. Updates on this will be provided by the company in due course.
Absolute Sports, the parent company of Sportskeeda, continues to maintain its presence among the top 10 sports news platforms in the U.S. as of September 2024. During the first half of FY25, Absolute Sports reported a 22% increase in revenue and an 18% rise in EBITDA. However, the company’s Pro Football Network experienced a decline in traffic during the start of the NFL season, impacting its EBITDA. This disruption according to the reports is believed to be temporary, what comes next will be interesting to watch in the coming quarters.
Nazara Technologies operates across Gaming, Esports, and Ad-tech. In H1 FY25, esports accounted for 57% of its revenue, while gaming contributed 36%. Geographically, North America remains the company’s largest market, with a 39% share of revenue, followed by India at 31% and the rest of the world at 30%.
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