Backed by the late ace-investor Rakesh Jhunjhunwala, Nazara Technologies Ltd. communicated in a filing with stock exchanges that it has purchased Pro Football Network, an online platform that follows and studies the National Football League of the USA for a consideration of $ 1.82 million or Rs 16 crore. As per the recent shareholding data for December 2022, Rekha Jhunjhunwala held 6,588,620 shares or a 10% stake in the company
Nazara Technologies is a diversified gaming & sports media platform with users spread across India, Africa and North America. It has a broad portfolio of offerings including eSports, ad tech, gamified early-age learning and interactive gaming.
It owns well-known brands such as World Cricket Championship (WCC), CarromClash, Kiddopia, Nodwin, PublishMe and Sportskeeda.
The transaction happened through Absolute Sports, a subsidiary of the company which is also the holding company of Sportskeeda. Absolute Sports bought a majority 73.3% stake in the digital platform. The overall stake purchase is a mix of primary capital infusion and secondary stake purchase from the present set of stakeholders.
Nitish Mttersain, CEO and joint MD of Nazara Technologies commented, “The PFN acquisition kickstarts an inorganic growth strategy in addition to the rapid organic growth in revenues and profitability that the company has been delivering. Looking forward to the next set of exciting products and content the team will bring to sports fans all over the world.”
Matt Cannata, founder and CEO of Pro Football Network said on the deal, “Their strategic investment and the resources they will provide us will supercharge Pro Football Network to levels beyond one’s imagination and allow us to compete with the biggest brands in the sports media landscape.”
Overall, Nazara has invested close to Rs 500 crore in more than 10 acquisitions to bolster its presence across mobile gaming, game news, ad tech, eSports, and more.
The shares of the gaming company have fallen 68% from its high of Rs 1,601 per share.
The analysts at the domestic brokerage firm ICICI Securities have given a ‘buy’ target price of Rs 700 per share on the back of strong revenue growth. This translates into an impressive 40% upside for the investors.
Written by Vikalp Mishra
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