Nazara Tech sizzles as arm plans to acquire SoapCentral assets for Rs 11.6 cr

Nazara Technologies rallied 6.98% to Rs 724.55 after the company announced that its subsidiary Absolute Sports will acquire all the assets of SoapCentral.com, a US entertainment content provider, for a cash consideration of Rs 11.6 crore.

In a regulatory filing, the company said that Absolute Sports has signed an asset purchase agreement to acquire all of the assets of SoapCentral.com. The transaction is for an all-cash consideration of $1.4 million (around Rs 11.6 crore) and is expected to be closed in the next 30 days.

In CY23, SoapCentral.com had revenues of US $621K (about Rs 5.2 crore). Absolute Sports will use its cash reserves to fund the transaction, said the company.

Absolute Sports aims to become one of the leading sports and entertainment focused publishers in the US market and this acquisition is a strong step towards achieving that goal. The company already operates SK Pop (Pop-Culture) and has experience scaling entertainment content under the SK-Pop banner. The company expects to unlock massive synergies with its content scaling and operating playbooks to establish Soap Central as a leading entertainment content destination for fans in the US, the company stated in the press release.

Ajay Pratap Singh, CEO of Absolute Sports. The entertainment publishing industry is more than twice the size of sports publishing (Similarweb, 2024) and allows us a great canvas for expansion into multiple content categories. Having tested our content publishing and hyper-growth playbook with the acquisition of Pro Football Network last year, we are confident of scaling Soap Central in a very short time.

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

The gaming and sports media company's consolidated net profit (from continuing operations) increased 43.4% to Rs 17.05 crore in Q4 FY24 from Rs 11.89 crore reported in Q4 FY23. Revenue from operations slipped 7.99% year on year (YoY) to Rs 266.21 crore during the quarter ended March 2024.

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