Absolute Sports, the parent company of sports news and analysis website Sportskeeda, has made its first acquisition in the sports media market in the US. Sportskeeda on Tuesday signed definitive agreements to acquire a stake of 73.27% in US sports media company Pro Football Network.
An exchange filing revealed that Sportskeeda, which is also the global sports subsidiary of Nazara Technologies, is set to acquire the majority stake for a total of $1.82 million (₹16 crores) in an all-cash deal. The deal is yet to be set in stone and is subject to fulfillment of customary precedent and other terms and conditions as set forth in the definitive agreements. A statement by Pro Football Network revealed that the all-cash transaction comprises a combination of primary capital infusion and secondary stock purchases.
“We are delighted to welcome Pro Football Network as the newest member of the family. This marks the beginning of our journey to create a comprehensive portfolio of sports media brands. Our flagship brand, Sportskeeda, has achieved success, with an increase from 15 million monthly active users in 2019 to 80 million in 2023,” said Ajay Pratap Singh, CEO of Absolute Sports.
The company will use its cash reserves to complete the transaction. Furthermore, the company has the option to acquire up to 10% of additional stock of the Pro Football Network in the calendar year 2024, and up to 8% of the stock in the next calendar year.
“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,” he added.
“For the past 3-4 years, Absolute Sports (Sportskeeda) has consistently achieved remarkable growth, while maintaining a healthy profit margin. The acquisition of Pro Football Network will further reinforce this growth and deepen Absolute Sports’ presence in the US sports media market, making a significant impact,” Nitish Mittersain, CEO and Joint MD of Nazara Technologies, commented on the matter.
With this development, Absolute Sports will add to its considerable user base in the US, which is already a key market for Sportskeeda. The US accounts for about 61.7% of the company’s revenues for the first nine months of the financial year 2023. For those who are unaware, Pro Football Network primarily focuses on the NFL (National Football League), as well as fantasy football, NFL Draft, and college football. Today, its content includes in-depth analyses that appeal to casual and hardcore football fans alike. It claims to have an average of over 5 million monthly active users. In the calendar year 2022, the firm clocked revenues of $2.1 million (Rs 17.5 crores). The company added in the statement that the acquisition will “help both companies derive synergistic value, enabling extended coverage from the US.”