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Nazara Technologies, a mumbai-based gaming and sports media company has increased its stake in Absolute Sports by 10.26% investing Rs 72.73 crore.
With this move, Nazara technology now owns 81.94% stake in Absolute Sports which solidifying its role in the expanding esports and gaming industry.
Through this acquisition
Under the share purchase agreements (SPAs) dated September 18, Nazara aimed to acquire 19.35% of Absolute Sports in two parts.
In the first part, Nazara paid Rs 72.73 crore to the founding shareholders for 21,830 equity shares of Absolute Sports. The remaining Rs 72.73 crore will be paid in the second part as per the agreements.
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Nazara's stake acquisition in Absolute Sports is part of an existing agreement, where the company has bought 21,830 equity shares of Rs 1 each, representing 10.26% of Absolute Sports' equity, from its founding shareholders.
Absolute Sports owns Sportskeeda, and Nazara is purchasing the stake from the founding shareholders. As of September 30, Sportskeeda remains among the top 10 US sports news websites. Absolute Sports saw a 22% increase in revenue and an 18% rise in EBITDA in H1 FY25.
In H1 FY25, gaming contributed 36% to the company's revenue, while e-sports contributed 57%. Nazara operates in three segments: Gaming, Esports, and Ad-tech. North America is Nazara's largest market, accounting for 39% of revenue, with India and the Rest of the World at 31% and 30%, respectively.
While Sportskeeda continues to grow in revenue and EBITDA, Pro Football Network saw a short-term decline in EBITDA due to a drop in traffic as the NFL season started. The company believes this is a temporary issue and expects the site to recover in the coming quarters.
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