Nazara increases stake in subsidiary Absolute Sports with ₹73cr investment

Nazara increases stake in subsidiary Absolute Sports with ₹73cr investment
27 Dec 2024

Leading gaming platform company Nazara Technologies has announced that it has acquired an additional 10.26% stake in its subsidiary Absolute Sports.

The deal was finalized on December 26 for ₹72.73 crore, according to an exchange filing.

With this latest acquisition, Nazara's total stake in Absolute Sports has now gone up to 81.94%.

Acquisition part of existing share purchase agreement
Agreement details

Nazara's stake acquisition is in line with an existing share purchase agreement (SPA) dated September 18, 2024.

The SPA was signed with Absolute Sports and its founding shareholders, Porush Jain and Srinivas Cuddapah, for a total stake acquisition of 19.35%.

According to the company's statement on December 26, "the Company has acquired 21,830 equity shares of ₹1/- each, representing 10.26% of the equity share capital of Absolute, from its Founding Shareholders."

Absolute Sports: Parent company of top-ranked sports news site
Company profile

Absolute Sports is the parent company of Sportskeeda, a sports news website that is a regular feature in the top 10 in the US.

The stake acquired by Nazara Technologies was purchased from the founding shareholders of Absolute Sports.

In H1 FY25, Absolute Sports recorded a 22% increase in revenue and an 18% growth in EBITDA.

Nazara's business segments and market distribution
Business overview

Nazara has three business verticals: Gaming, Esports, and Ad-tech. In H1 FY25, gaming contributed 36% to the company's revenue, while e-sports made up a whopping 57%.

North America is Nazara's biggest market with a 39% share in revenue. India and the rest of the world are not far behind with 31% and 30%, respectively.