Nazara Tech step-down subsidiaries hold Rs 64 cr at Silicon Valley Bank

The US-based Silicon Valley Bank (SVB) is currently under the receivership of the Federal Deposit Insurance Corporation (FDIC).

Nazara Technologies on Sunday (12 March) said its step down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances worth $7.75 mn (about Rs 64 crore) in SVB.

Kiddopia Inc is a 100% subsidiary of Paper Boat Apps (owned 51.5% by Nazara) & Mediawrkz Inc is a 100% subsidiary of Datawrkz Business Solutions (owned 33% by Nazara).

The US Federal Deposit Insurance Corporation (FDIC) has stated that it would issue an advance dividend to depositors within the next week with future payments coming as asset sales occurred. Regardless of the ultimate outcome and its timing, both subsidiaries continue to be well capitalised and are generating positive cash flows along with profitability. "Therefore, we expect no impact on their day-to-day operations, business performance and growth plans due to the SVB event," the company said in a statement.

Further, Nazara Group (Nazara Technologies and its subsidiaries) said it continues to maintain healthy reserves of cash and cash equivalents in excess of Rs 600 crore excluding the SVB impacted funds. "The situation with SVB remains fluid and the company shall keep all the stakeholders and public at large updated on further developments," it added.

Meanwhile, the United States regulators Sunday (12 March) night cleared a plan for the Silicon Valley Bank to protect depositors and assured that no losses would be borne by the taxpayers. The Joe Biden administration announced that depositors of the SVB will have access to their money from Monday.

"The depositors will have access to all their money starting Monday, that is, March 13. No losses associated with the resolution of the Silicon Valley Bank (SVB) will be borne by the taxpayer," said a joint statement issued by the Department of the Treasury, Federal Reserve, and FDIC.

The statement was issued as FDIC seized the assets of SVB on Friday, marking the largest bank failure since the 2008 financial crisis.

Nazara Technologies is a diversified gaming & sports media platform with presence in India and across emerging & developed global markets such as Africa and North America. It has offerings across the interactive gaming, eSports, ad-tech and gamified early learning ecosystems including World Cricket Championship (WCC) and CarromClash in mobile games, Kiddopia in gamified early learning, Nodwin, PublishMe and Sportskeeda in eSports and eSports media, OpenPlay, Halaplay and Qunami in skill-based, fantasy and trivia games, and Datawrkz in digital ad-tech.

Nazara Technologies' consolidated net profit jumped 75.73% to Rs 18.1 crore in Q3 FY23 from Rs 10.3 crore recorded in Q3 FY22. Revenue from operations soared 69.43% year on year (YoY) to Rs 314.80 crore in the quarter ended 31 December 2022.

Shares of Nazara Technologies fell 1.47% to Rs 517.75 on Friday, 10 March 2023.

Powered by Capital Market - Live News