Nazara Technologies subsidiaries hold $8m balance in Silicon Valley Bank

Nazara Technologies revealed that two of its step-down subsidiaries Kiddopia and Mediawrkz have cash balances of $7.75 million (INR 64 crores) in the troubled Silicon Valley Bank (SVB).

Presently, Silicon Valley Bank has been placed under the receivership of the Federal Deposit Insurance Corporation (FDIC).

Kiddopia is a fully-owned subsidiary of Paper Boat Apps in which Nazara Technologies has a 51.5% stake.

Mediawrkz, on the other hand, is a fully-owned subsidiary of Datawrkz Business Solutions, in which the Indian gaming and sports media company has a stake of 33%.

FDIC has announced that it will issue an advanced dividend for depositors within the next week with future dividends due as asset sales occur.

Nazara Technologies said that no matter what the outcome and the timing are, the two subsidiaries remain adequately capitalized and have positive cash flows and profits. The Indian gaming and sports media company, therefore, doesn’t anticipate any effect on their day-to-day operations, business performance, or growth plans because of the Silicon Valley Bank fiasco.

Additionally, Nazara Group, which includes Nazara Technologies and its subsidiaries, is said to have a good reserve of money and equivalents of more than INR 600 crores, after excluding Silicon Valley Bank impacted funds.

The situation at Silicon Valley Bank remains fluid and the company will keep all stakeholders and the public in general informed about future developments, said Nazara Technologies.