Nazara Technologies Ups 81.94% Stake in Sportskeeda Parent

Nazara Technologies has strengthened its hold in its subsidiary, Absolute Sports, by acquiring an additional 10.26% stake for ₹72.73 crore. This move raises Nazara’s total stake in Absolute Sports, the parent company of Sportskeeda, to 81.94%. The acquisition was part of a share purchase agreement (SPA) dated September 18, 2024, between Nazara, Absolute Sports, and its founding shareholders, Porush Jain and Srinivas Cuddapah. The gaming platform company confirmed the acquisition in a regulatory filing on December 26, 2024, which involved the purchase of 21,830 equity shares of ₹1 each from the founding shareholders.  

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Absolute Sports has been a valuable asset for Nazara Technologies, significantly contributing to its financial and operational growth. In the first half of FY25, Absolute Sports reported a 22% increase in revenue and an 18% rise in EBITDA, maintaining its strong performance. Sportskeeda, a key brand under Absolute Sports, has consistently ranked among the top 10 sports news websites in the United States as of September 30, 2024. Despite a short-term dip in its Pro Football Network segment during the NFL season's kickoff in September, the company expects recovery in the coming quarters.  

Nazara Technologies, operating across Gaming, Esports, and Ad-tech, continues to diversify and grow its business. In H1FY25, gaming accounted for 36% of its revenue, while esports was the largest contributor at 57%. North America remains Nazara's largest market, contributing 39% of its revenue, followed by India at 31% and the Rest of the World at 30%. Sportskeeda's growth trajectory aligns with the broader vision of Nazara to dominate key markets and business segments.  

To Summarize

The temporary setback in the Pro Football Network's performance, attributed to traffic flow issues during the NFL season start, has been described by the company as a short-term glitch. Nazara remains confident in Sportskeeda's resilience and expects it to bounce back in the upcoming quarters. This strategic acquisition further solidifies Nazara’s position in the gaming and esports sectors, underscoring its commitment to expanding its portfolio and strengthening its presence in global markets.