Nazara Technologies, a leading gaming company based in Mumbai, has expanded its presence in the sports media industry. Nazara acquired an additional 10.26% stake in Absolute Sports for Rs 72.73 crore, boosting its total ownership in the firm to 81.94%.
Details of Acquisition
The recent acquisition is part of a plan outlined in share purchase agreements (SPAs) signed on September 18. Nazara Technologies had decided to acquire 19.35% of Absolute Sports in two phases.
In the first phase, Nazara paid Rs 72.73 crore to purchase 21,830 equity shares from the founding shareholders of Absolute Sports. This increased Nazara’s stake by 10.26%. The second phase, involving another payment of Rs 72.73 crore, is expected to follow as per the agreements.
In an official statement, Nazara confirmed the transaction, stating, “The Company, today, i.e., December 26, 2024, has acquired 21,830 equity shares representing 10.26% of the equity share capital of Absolute.”
About Absolute Sports
Absolute Sports is best known for its sports media platform, Sportskeeda, which has shown remarkable growth. The platform is now ranked among the top 10 sports news websites in the United States as of September 30. With Nazara’s majority stake, Absolute Sports continues to operate as a subsidiary, contributing significantly to the gaming giant’s portfolio.
Performance Highlights
Sportskeeda has reported strong financial performance, with revenue and EBITDA increasing by 22% and 18%, respectively, during the first half of fiscal year 2025 (H1 FY25).
However, Pro Football Network, another platform owned by Absolute Sports, experienced a temporary drop in traffic during the NFL season kickoff. This decline affected its earnings, but Nazara remains optimistic about its recovery in upcoming quarters.
Nazara’s Business Segments
Nazara Technologies operates across three major segments:
- Gaming: This segment contributed 36% of the company’s revenue in H1 FY25.
- Esports: The largest segment, accounting for 57% of revenue.
- Ad-Tech: Provides advertising and marketing services, primarily for gaming and esports.
Global Market Presence
North America is Nazara’s largest market, contributing 39% of its revenue. India follows with 31%, while the rest of the world accounts for the remaining 30%. These figures highlight Nazara’s growing global footprint in the gaming and esports sectors.
Nazara Technologies’ increased stake in Absolute Sports underscores its commitment to strengthening its position in sports media and esports. With platforms like Sportskeeda driving growth and expansion into international markets, the company is poised for continued success in the gaming industry.
