Atari acquires a stake in tinyBuild for $2 million. Shares of tinyBuild rose by 70%
Atari and tinyBuild have entered into a strategic partnership. As part of this, Atari will invest $2 million in the Hello Neighbor publisher and acquire approximately 7.5% of tinyBuild.
Hello Neighbor 2
tinyBuild announced the deal in a note to investors. The company also stated that it is preparing to issue new shares worth $12 million. This will help strengthen its financial position.
Before finalizing the deal and issuing the shares, tinyBuild must obtain investor approval. An extraordinary meeting is scheduled for January 18, 2024.
tinyBuild decided to raise additional funds due to financial difficulties. In June, the company reported that its results for the first half of 2023 were below expectations (note, as later revealed, tinyBuild experienced an operating loss of $31.9 million, whereas in the same period the previous year, it reported an operating profit of $6.8 million). Additionally, tinyBuild decided to stop publishing games from external developers and has not ruled out the possibility of restructuring in the future. Following the release of the report, the company's stock value dropped sharply. Currently, tinyBuild is valued at 96.5% less than in January 2023.
The stock price movement of tinyBuild from January 1 to December 21, 2023
The recent decision by tinyBuild has positively impacted the company's stocks. At the time of writing, they are trading at £0.04 ($0.05) each, which is 71% higher than in recent days.
The stock price movement of tinyBuild from December 15 to 21, 2023
