Nazara Technologies Expands Global Footprint With DeltiasGaming.com & Fusebox Games Acquisitions

India’s leading gaming and sports media company, Nazara Technologies, is making significant strides towards becoming a global powerhouse. With a substantial war chest of $100 Million earmarked for strategic acquisitions over the next two years and bolstered by a 13% increase in net profit for Q1 FY25, reaching ₹23.60 Crores, the company is actively pursuing an aggressive expansion strategy.

Nazara’s recent acquisitions underscore its ambitious vision. The company is not simply targeting any company but is focused on acquiring top-tier gaming studios, esports powerhouses, and innovative companies in emerging technologies such as Web3, VR, and AI. This multifaceted approach signals Nazara’s intent to establish a significant presence across various segments of the gaming industry.

Nazara’s Absolute Sports: Expanding US Reach With DeltiasGaming.com

Nazara’s subsidiary, Absolute Sports, is set to make a significant impact in the US gaming and esports scene with its acquisition of DeltiasGaming.com. This US-based content platform boasts an impressive revenue stream and a dedicated community of nearly 1.5 Million (150 Crores) monthly readers.

The acquisition, valued at approximately ₹7.50 Crores, will be an all-cash transaction funded directly from Absolute Sports’ existing cash reserves. Subject to certain closing conditions, the deal is expected to be finalized within the next 45 days.

This strategic move aligns perfectly with Absolute Sports’ vision to strengthen its foothold in the US gaming and esports media publishing sector. The company plans to leverage its existing strong presence, particularly through flagship brands like Sportskeeda.com, to further expand its reach and influence in this thriving market.

With the addition of DeltiasGaming.com’s engaged audience, Absolute Sports will now serve over 5 Million US gaming enthusiasts with high-quality gaming and esports-related content across its various properties, including Sportskeeda.com, ProFootballNetwork.com, and SoapCentral.com.

Beyond its established website presence, the acquisition will give Absolute Sports access to a substantial audience on popular platforms like YouTube and Twitch, further amplifying its reach and influence in the gaming community.

Nazara Bolsters Gaming Portfolio With Fusebox Games Acquisition

Nazara Technologies has further expanded its global footprint by acquiring London-based gaming studio Fusebox Games for £21.18 Million (around ₹234.50 Crores).

Fusebox Games specializes in IP-driven interactive story-based games, primarily targeting audiences in developed markets like the US, UK, and Australia. Their successful game “Love Island,” based on the popular British TV show, demonstrates their expertise in creating engaging, IP-based gaming experiences. Fusebox is poised for continued growth and success with new games based on globally recognized TV IPs in the pipeline.

The studio’s financial performance has been impressive, reporting ₹87.50 Crores in revenue with ₹11.70 Crores in EBITDA in 2023. The momentum continued into 2024, with the studio reporting ₹117 Crores in revenue and a remarkable ₹33.30 Crores in EBITDA from January to July. These figures underscore the studio’s strong potential and make it a valuable addition to Nazara’s gaming portfolio.

Nazara’s Growth Strategy & Future Outlook

This acquisition is part of Nazara’s broader strategy to bolster its gaming portfolio and establish a stronger presence in the international market. It follows a series of strategic investments by Nazara in recent months, including the acquisition of Nextwave Multimedia, the creators of the World Cricket Championship mobile game franchise, and investments in the Web3 gaming platform Circle of Games (COG) and Comic Con India.

Despite facing challenges in some segments and reporting a decline in consolidated net profit for the March quarter of FY24, Nazara’s founder and CEO, Nitish Mittersain, remains optimistic about the company’s future. He emphasized the potential of IP-based games and highlighted Nazara’s intention to leverage its vast user base in India to support global studios like Fusebox through user acquisition, data analytics, live operations, and AI solutions.

Interview With Economic Times: Insights From Nitish Mittersain

In a recent interview with the Economic Times, Mittersain discussed Nazara’s focus on balancing profitability and growth. He explained that recent investments in user acquisition are aimed at driving faster growth in the long term, even if it temporarily impacts margins.

Mittersain also addressed the impact of the new GST regime on the real money gaming segment, acknowledging a decline in revenue but expressing confidence in the segment’s future profitability and growth. He highlighted the company’s efforts to optimize the business and achieve stability in the face of regulatory changes.

When asked about Nazara’s acquisition strategy, Mittersain emphasized the company’s patience and selectivity in identifying value-accretive opportunities. He reiterated Nazara’s ambitious target of achieving ₹300 Crores EBITDA in FY27 and how these acquisitions will be crucial in reaching that goal.

Finally, Mittersain expressed confidence in Kiddopia‘s future, emphasizing the potential for faster growth and innovation now that Nazara has acquired 100% ownership. He also highlighted the positive trends in key performance indicators like churn rate, ARPU, and cost per trial.

With these strategic acquisitions and a clear vision for the future, Nazara Technologies is well-positioned to continue its growth trajectory and solidify its position as a global leader in the gaming industry. The company’s focus on expanding its gaming portfolio, entering new markets, and leveraging emerging technologies demonstrates its commitment to staying at the forefront of the rapidly evolving gaming landscape.

The Indian gaming industry is witnessing a remarkable transformation, and Nazara Technologies is at the helm of this exciting journey. As the company continues to execute its growth strategy, it will be interesting to see how it shapes the future of gaming in India and beyond.