'Sportskeeda Inc.', wholly owned subsidiary of Absolute Sports Private Limited (Sportskeeda), material subsidiary of the Company, has today signed definitive agreements for the acquisition of 73.27% of the capital stocks of Pro Football Network LLC, a Connecticut Limited Liability Company, at a consideration of USD 1.817 million, to be paid in cash.
Pro Football Network LLC is a US Sports Digital Media Publisher focusing on publishing content related to the National Football League in the United States. With more than an average of 5 million MAUs, Pro Football Network is widely recognized as one of the best NFL-focused sports sites and is ranked 3rd amongst the top NFL focused media sites in the US (SimilarWeb Rankings, January 2023). NFL is the most watched sport in the US.
The acquisition is proposed by way of combination of both primary infusion in preferred stocks and secondary purchase of common stock from its existing stockholders and subsequent exchange of such common stock into preferred stock, which in aggregate represent up to 73.27% of the capital stock. Further, Sportskeeda Inc, reserves an option to acquire up to 10% and up to 8% additional stock of the Pro Football Network LLC in CY 2024 and CY 2025 respectively.
The proposed acquisition is subject to fulfillment of certain customary conditions precedent and other terms and conditions as set forth in the definitive agreements. The acquisition is being funded out of internal cash reserves of Sportskeeda which has been advanced as loan to its wholly owned subsidiary 'Sportskeeda Inc'.
"We are delighted to welcome Pro Football Network as the newest member of the Absolute Sports family. This marks the beginning of our journey to create a comprehensive portfolio of sports media brands," said Ajay Pratap Singh, CEO of Absolute Sports. "Our flagship brand, Sportskeeda, has achieved phenomenal success, with an increase from 15 million MAUs in 2019 to over 76 million in 2023, all while maintaining highly profitable operations. With this acquisition, we are happy that we have kick-started our M&A growth engine. We are confident that this will create massive value for our audiences and stakeholders alike, and we look forward to pursuing multiple acquisitions in the near future to further strengthen our position in the sports media landscape."
Commenting on the acquisition, Nitish Mittersain, CEO and Joint MD of Nazara Technologies said, "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."
"This is a huge day for Pro Football Network. For quite some time, we were looking for the perfect partner and Absolute Sports is just that," said Matt Cannata, Founder and CEO of Pro football Network. "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."
Shares of Nazara Technologies Limited was last trading in BSE at Rs. 506.75 as compared to the previous close of Rs. 506.65. The total number of shares traded during the day was 27792 in over 1845 trades.
The stock hit an intraday high of Rs. 514.75 and intraday low of 502.00. The net turnover during the day was Rs. 14108206.00.