Introduction: Nazara Expands Its Hold in the Sports Media Market

Nazara Technologies, a Mumbai-based gaming powerhouse, has just made a bold move in the sports media sector by acquiring an additional 10.26% stake in Absolute Sports. The deal, valued at Rs 72.73 crore, brings Nazara’s total stake in Absolute Sports to a dominant 81.94%.

This acquisition not only strengthens Nazara’s foothold in the esports and gaming industry but also signals its increasing influence in sports media platforms, especially with its flagship brand, Sportskeeda, in the spotlight. But what does this mean for Nazara and the future of sports media?

Let’s break it down.

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Nazara’s Big Move: What’s in the Deal?

On December 26, 2024, Nazara Technologies confirmed the completion of its latest acquisition through a stock purchase agreement (SPA). Here’s what happened:

• First Tranche: Nazara paid Rs 72.73 crore to the founding shareholders of Absolute Sports, securing 21,830 equity shares. This move gives Nazara a 10.26% stake in the company.
• Overall Stake: With this acquisition, Nazara now holds a total of 81.94% in Absolute Sports on a fully diluted basis.

Nazara had previously planned to buy up to 19.35% of Absolute Sports in two phases, with this being the first. The second tranche of the deal is expected to follow soon, further cementing Nazara’s control over the company.

Why Did Nazara Make This Move?

Nazara’s decision to buy more of Absolute Sports highlights the company’s commitment to expanding its presence in the rapidly growing gaming, esports, and sports media markets. By increasing its stake to nearly 82%, Nazara is positioning itself as a leader in the global sports and gaming ecosystem.

But why Absolute Sports? The company owns and operates some key media platforms, most notably Sportskeeda, one of the leading sports websites. In fact, Sportskeeda has now become one of the top 10 sports news sites in the U.S., as of September 2024. This makes Absolute Sports an attractive asset for Nazara, which has a strong focus on content creation and digital media.

What Does This Acquisition Mean for Absolute Sports?

This acquisition is also a big win for Absolute Sports. While Nazara has taken majority control, the company’s growth story remains impressive.

Performance Snapshot:

• Sportskeeda continues to thrive, ranking among the top 10 U.S. sports news websites. This shows the site’s increasing reach and popularity in a competitive market.
• In the first half of fiscal year 2025 (H1 FY25), Absolute Sports saw strong financial growth, with its revenue rising by 22% and EBITDA growing by 18%. These figures suggest that the company is on the right track, even if it faced a few bumps along the way.

A Small Setback: Pro Football Network Faces Traffic Dip

Despite the strong overall growth, Absolute Sports did face a minor setback with one of its properties: Pro Football Network (PFN). This NFL-focused site experienced a temporary dip in traffic at the start of the season, which impacted its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

However, Nazara remains optimistic that PFN will bounce back in the coming months, especially as the NFL season picks up steam.

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Nazara’s Growing Business: A Diverse Portfolio

Nazara Technologies operates across three main business segments:

1. Gaming – This segment brought in 36% of Nazara’s total revenue in H1 FY25. With gaming being a booming industry, this segment is poised for even more growth.
2. Esports – A massive driver of revenue, esports accounted for 57% of Nazara’s revenue in the first half of FY25. The growing popularity of competitive gaming and esports events continues to attract more players and fans worldwide.
3. Ad-Tech – Nazara’s ad-tech services, which focus on advertising and marketing for gaming and esports platforms, make up the remaining portion of their business.

Nazara’s geographic revenue breakdown is also noteworthy:

• North America is its largest market, contributing 39% of total revenue.
• India, the home turf, contributes 31%.
• The rest of the world makes up the remaining 30%.

Looking Ahead: What’s Next for Nazara?

With its expanding stake in Absolute Sports, Nazara is positioning itself as a dominant force in both gaming and sports media. The company has already established a significant presence in the esports space, and this acquisition further strengthens its grip on the sports media landscape.

In particular, the growth of Sportskeeda could be key in expanding Nazara’s influence in the sports media space, especially in the highly competitive U.S. market. As Nazara continues to invest in digital content and gaming, it’s clear that the company is not only focused on gaming but also on creating a strong presence across multiple entertainment sectors.

For investors and fans alike, this move signals Nazara’s confidence in the long-term potential of esports and sports media. Whether it’s through gaming platforms, esports events, or sports news websites, Nazara is all in.

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Conclusion: Nazara Is All-In on Esports and Sports Media

Nazara Technologies’ decision to acquire an additional 10.26% stake in Absolute Sports for Rs 72.73 crore is a strategic move that solidifies the company’s dominance in the esports and sports media industries. With its majority stake in Absolute Sports, Nazara now has full control of some key digital platforms, including the popular Sportskeeda.

This acquisition, combined with the company’s strong growth in gaming and esports, ensures that Nazara is well-positioned for continued success in an ever-expanding digital entertainment ecosystem. With the global esports market set to grow even further in the coming years, Nazara’s aggressive strategy could make it a leader not only in India but on the global stage.