Nazara Tech Jumps As US Arm Acquires Content Website Soap Central
The stock rose as much as 15.88% during the day to Rs 808 apiece on the NSE.
Shares of Nazara Technologies Ltd. surged a day after its US arm Absolute Sports announced the acquisition of a US entertainment content website, SoapCentral.com, for an all-cash consideration of $1.4 million or Rs 11.6 crore.
Absolute Sports is the parent company of Sportskeeda.com and ProFootballNetwork.com. An exchange filing by the company said that it will use its cash reserves to fund the transaction.
"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," an exchange filing by the company said. "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."
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On the NSE, the stock rose as much as 15.88% during the day to Rs 808 apiece, the highest level since June 3. It pared gains to trade 14.64% higher at Rs 799.05 apiece, as of 12:28 p.m. This compares to a 0.63% advance in the NSE Nifty 50 Index.
It has risen 14.6% on a year-to-date basis but fallen 6.7% in the last 12 months. Total traded volume so far in the day stood at 2.05 times its 30-day average. The relative strength index was at 66.46.
Out of the 12 analysts tracking the company, seven maintain a 'buy' rating, four recommend a 'hold,' and one suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 1.8%.
