Nazara Technologies Expands Its Stake in Absolute Sports: A Strategic Move in the Gaming Sector

Nazara Technologies Expands Its Stake in Absolute Sports: A Strategic Move in the Gaming Sector

Nazara Technologies, a leading player in the Indian gaming industry, has further solidified its control over its subsidiary, Absolute Sports, by acquiring an additional 10.26% stake in the company. The transaction, valued at INR 72.73 crore (approximately $8.4 million), brings Nazara’s total ownership in Absolute Sports to 81.94%. This move highlights Nazara’s strategic focus on expanding its presence in the gaming sector and its commitment to strengthening its portfolio of gaming assets.

Strengthening Control Over Absolute Sports

In a formal statement, Nazara Technologies confirmed the acquisition of 21,830 equity shares with a face value of INR 1 each from the founding shareholders of Absolute Sports. This additional stake purchase increases Nazara’s holding in the subsidiary, further consolidating its dominant position. Absolute Sports, known for its sports and gaming platform, has been an integral part of Nazara’s broader strategy to diversify its portfolio in the gaming industry.

The recent acquisition is part of a larger deal that Nazara has been pursuing to bolster its control over Absolute Sports. The company had already agreed to acquire a 19.35% stake in Absolute Sports under a Share Purchase Agreement (SPA) signed in September. This agreement outlines that Nazara will pay INR 145.47 crore to acquire this additional stake, further deepening its relationship with the subsidiary.

Nazara’s Growing Gaming Portfolio

Nazara Technologies has been aggressively expanding its gaming portfolio, and the increased stake in Absolute Sports is a clear reflection of this strategy. With the latest acquisition, Nazara now controls a substantial majority of Absolute Sports, a company known for its sports-based gaming platform. This move positions Nazara to gain better leverage in the growing sports gaming sector, where user engagement and monetization potential are rapidly increasing.

The gaming industry, particularly in India, has seen tremendous growth in recent years, with more consumers engaging in online gaming across various platforms. By increasing its stake in Absolute Sports, Nazara is capitalizing on the expanding opportunity in the sports gaming segment, which includes fantasy sports, mobile gaming, and esports. Nazara’s portfolio includes other popular gaming entities like Gamified, World Cricket Championship, and Kiddopia, further positioning the company as a leader in India’s gaming ecosystem.

The Share Purchase Agreement (SPA) and Future Prospects

The Share Purchase Agreement (SPA) between Nazara Technologies, Absolute Sports, and its founding shareholders, Porush Jain and Srinivas Cuddapah, is a key component of the recent acquisition. Under this agreement, Nazara plans to acquire a 19.35% stake in Absolute Sports for INR 145.47 crore. This deal strengthens Nazara’s long-term strategic goals, as it positions the company for growth in multiple gaming segments.

The additional stake in Absolute Sports allows Nazara to exert more influence over the subsidiary’s operations and future growth trajectory. Given the rising popularity of fantasy sports and sports-related gaming, this acquisition positions Nazara to tap into a lucrative market. The company is expected to benefit from this expansion, not only through increased revenues but also by consolidating its leadership position in India’s burgeoning gaming sector.

Conclusion

Nazara Technologies’ decision to increase its stake in Absolute Sports reflects its ongoing commitment to dominating the Indian gaming market. The acquisition aligns with the company’s broader strategy to diversify its gaming portfolio and expand its influence in the rapidly growing sports gaming sector. With this acquisition, Nazara is better positioned to capitalize on emerging opportunities in the gaming industry and reinforce its status as a major player in the global gaming ecosystem. As gaming continues to grow in popularity, Nazara’s strategic investments in key subsidiaries like Absolute Sports are likely to yield significant returns in the future.