Nazara Technologies, a diversified gaming and sports media platform, shared that two of its step-down subsidiaries – Kiddopia and Mediawrkz – had cash balances at Silicon Valley Bank (SVB), which the Federal Deposit Insurance Corporation is currently seizing (FDIC) after SVB collapse on Friday, as per Business Today.
According to Nazara Technologies, Kiddopia Inc. and Mediawrkz Inc. have combined balances at SVB totaling $7.75 million (about Rs. 64 crore).
“We wish to inform you that two of Nazara Technologies Limited’s (Nazara) step-down subsidiaries Kiddopia Inc and Mediawrkz Inc hold cash balances at Silicon Valley Bank (SVB), which is currently under the receivership of the Federal Deposit Insurance Corporation (FDIC). The balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for $7.75 million (Rs 64 crore),” Nazara Technologies said in the regulatory filing.
In a regulatory statement, the company stated that both of its subsidiaries are still profitably operating and have strong capitalisation. It stated that it consequently does not anticipate the SVB occurrence having any effect on its ongoing operations, business performance or development ambitions.
It further stated that, excluding the funds affected by the SVB, the Nazara Group (Nazara Technologies Limited and its subsidiaries) continues to have robust reserves of cash and cash equivalents totaling more than 600 crore.
The company stated that the situation with SVB is still fluid and that it will keep all parties involved and the general public informed of any further developments. The FDIC said that it would give depositors an early payout within the upcoming week, with subsequent payments coming as assets were sold.
On the other side, news reports claimed that Nazara Technologies shares has dropped by 7 per cent after the company disclosed SVB collapse to stock exchanges.