Digital gaming publisher Nazara Technologies has announced that two of its 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 cash balances held at SVB by Kiddopia Inc. and Mediawrkz Inc cumulatively account for $7.75 mn (Rs 64 crore).
Kiddopia Inc is a 100% subsidiary of Paper Boat Apps, which is owned 51.5% by Nazara. Mediawrkz Inc is a 100% subsidiary of Datawrkz Business Solutions , which is owned 33% by Nazara. FDIC has stated that it would issue an advance dividend to depositors within the next week, with future payments coming as asset sales occurred. Nazara Technologies has reassured stakeholders that both subsidiaries continue to be well-capitalised.
Therefore, the company does not expect any impact on their day-to-day operations, business performance, and growth plans due to the SVB event. Nazara Group, which includes Nazara Technologies
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The situation with SVB remains fluid, and the company has assured stakeholders that it will keep them updated. The company’s announcement comes after SVB collapse. FDIC seized assets of SVB on March 10, after it halted trading on the same day. Shares of the bank plunged over 50% in the US stock markets after it decided to sell a large portion of its securities portfolio which was expected to infuse fresh capital.