Nazara Tech Shares Jump 6% After Subsidiary Buys US Entertainment Site SoapCentral for Rs 11 Cr
Shares of Nazara Technologies Limited rose by 6% to Rs 723 on June 5 after the company announced that its subsidiary, Absolute Sports, will buy all assets of SoapCentral.com, a US entertainment site, for Rs 11.6 crore in an all-cash deal.
This acquisition boosts Absolute Sports’ presence in the US entertainment publishing sector. The company also runs SK Pop, a site focused on K-POP and Korean media. The deal is expected to be finalized in the next 30 days, according to a regulatory filing on June 5.
The management stated that the entertainment publishing industry is more than twice the size of sports publishing, offering Absolute Sports a large opportunity to expand into various content areas. They are confident of quickly growing SoapCentral.
Absolute Sports, through its main brand Sportskeeda.com, is a global sports media platform that reaches over 100 million fans every month. Nazara Technologies, a gaming and sports media platform, acquired a majority stake in Absolute Sports in 2019.
In the fourth quarter, Nazara Technologies reported a net profit of Rs 0.18 crore, a significant drop from Rs 9.4 crore in the same quarter last year. This decline was mainly due to a Rs 16.87 crore loss from discontinued operations, including write-offs in several old business areas like its real-money gaming business Halaplay. The company also announced plans to merge or close entities that don’t fit its future vision, including Nazara Bangladesh and NZ Mobile Nigeria.
As of 11:20 am, shares were trading at Rs 720, up 7% from the last close on the NSE. Nazara Tech shares have gained 15% since the start of the year.
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