STARTUP-STORIES

Absolute Sports, a Nazara Subsidiary, Acquires SoapCentral for $1.4 Million

SUMMARY

Absolute Sports, a subsidiary of Nazara Technologies, acquired SoapCentral.com, an entertainment content provider, for $1.4 million. This move allows Absolute Sports to expand beyond sports content and leverage their publishing expertise in a new category. SoapCentral.com's existing revenue base presents an opportunity for further growth under Absolute Sports' leadership.

This acquisition aligns with Nazara Technologies' broader M&A strategy of acquiring content providers. They have allocated $100 million for potential acquisitions and are currently in talks for several deals, including game studios and entities for their subsidiaries. Nazara Technologies has also shown recent financial growth and secured funding to support these strategic moves.

Absolute Sports, a subsidiary of Nazara Technologies, a prominent media and gaming company listed on the stock exchange, has announced the acquisition of SoapCentral.com for $1.4 million (approximately Rs 11 crore) in an all-cash deal.

Target: SoapCentral.com, a provider of entertainment content related to television shows, primarily targeting the US audience.
Deal Value: $1.4 million (Rs 11 crore)
Strategic Rationale: Expansion into new content categories beyond sports, leveraging Absolute Sports' existing publishing expertise.
Growth Potential: SoapCentral.com's revenue of $621,000 (Rs 5 crore) in 2023 offers a base for scaling under Absolute Sports' guidance.

Nazara Technologies' M&A Strategy:

Focus on Content Acquisitions: This acquisition aligns with Nazara's strategy of acquiring content providers, as evidenced by the purchase of Pro Football Network in 2023.
Targeted Expansion: Nazara has allocated $100 million (Rs 830 crore) for potential acquisitions across India, Europe, and North America.
Active Deal Pipeline: Nazara is currently in advanced talks for several acquisitions, including game studios for its Nazara Publishing division and entities for Sportskeeda, Nodwin, and Datawrkz subsidiaries.

Nazara Technologies' Financial Performance:

FY24 Revenue Growth: 4.3% year-on-year increase to Rs 1,138 crore.
Profitability: Profit after tax (PAT) from continued operations grew 41% to Rs 89 crore in FY24.
Recent Funding: Nazara has secured Rs 760 crore from investors like Zerodha co-founder Nikhil Kamath, SBI Mutual Fund, ICICI Prudential Mutual Fund, and Plutus Wealth Management.

the acquisition of SoapCentral.com signifies Absolute Sports and Nazara Technologies' commitment to content diversification and strategic expansion. By leveraging their experience and financial resources, they aim to scale SoapCentral.com and further solidify their position in the media and gaming landscape.