Introduction: Strengthening Presence in Sports Media

Nazara Technologies, a leading gaming and esports company based in Mumbai, has acquired an additional 10.26% stake in Absolute Sports for Rs 72.73 crore, raising its total ownership to 81.94%. The move enhances Nazara’s position in the esports and sports media industry.

Details of the Acquisition

Share Purchase Agreements

The acquisition followed share purchase agreements (SPAs) signed on September 18, 2024, detailing a two-tranche process:

1. First Tranche:
   • Amount Paid: Rs 72.73 crore.
   • Shares Acquired: 21,830 equity shares.
2. Second Tranche:
   • An additional Rs 72.73 crore to be paid as per the agreement.

Completion Announcement

On December 26, 2024, Nazara confirmed the completion of the first tranche, raising its total stake in Absolute Sports to 81.94% on a fully diluted basis.

Performance Highlights of Absolute Sports

Sportskeeda’s Growth

Absolute Sports operates Sportskeeda, a flagship sports media platform that:

• Ranked among the top 10 U.S. sports news websites as of September 30, 2024.
• Reported a 22% increase in revenue in H1 FY25.
• Achieved an 18% rise in EBITDA during the same period.

Challenges Faced by Pro Football Network

While Sportskeeda performed exceptionally well, Pro Football Network, another property of Absolute Sports, experienced:

• A temporary traffic dip during the NFL season kickoff.
• A short-term impact on EBITDA, which Nazara expects to recover in the upcoming quarters.

Nazara’s Broader Business Operations

Core Business Segments

Nazara operates in three primary sectors:

1. Gaming: Contributed 36% of revenue in H1 FY25.
2. Esports: Accounted for 57% of revenue in the same period.
3. Ad-Tech: Provides marketing and advertising services for gaming and esports.

Market Contributions

• North America: Largest market, contributing 39% of revenue.
• India: Second-largest market with 31% contribution.
• Rest of the World: Accounts for 30% of revenue.

Strategic Importance of the Acquisition

Bolstering Sports Media Influence

The acquisition further integrates Sportskeeda and other Absolute Sports platforms into Nazara’s portfolio, solidifying its foothold in the global esports ecosystem.

Future Outlook

Nazara remains optimistic about Absolute Sports’ growth trajectory, especially as Pro Football Network recovers traffic and earnings in the next fiscal quarters.

This acquisition emphasizes Nazara’s strategic focus on dominating the sports media and esports sectors. With 81.94% ownership in Absolute Sports, Nazara continues to expand its global influence in gaming, sports content, and related technologies.