Atari, the renowned name in the gaming industry, has recently announced a strategic $2 million investment in tinyBuild, the publisher known for Hello Neighbor and Potion Craft. This move, according to TechRaptor, is part of tinyBuild’s broader initiative to raise $14 million in capital through issuing new common shares.
Wade Rosen, Atari’s CEO, emphasized that this investment aligns perfectly with Atari’s long-term strategy, highlighting tinyBuild’s strong portfolio of industry-leading games and its substantial fan base. Alex Nichiporchik, CEO of tinyBuild, welcomed the investment, recognizing Atari as a “timeless brand” and considering their investment a validation of tinyBuild’s strategic direction.
Atari’s stake in tinyBuild
Following this investment, Atari is poised to hold approximately 7.5% of tinyBuild’s total share capital. This is contingent on the approval of the deal by tinyBuild shareholders. This investment comes at a time when tinyBuild recently announced layoffs due to trading in Q4 2023 falling below expectations.
Despite facing challenges in 2022, Atari has maintained an active presence in the gaming industry. Earlier this year, the company acquired 12 classic arcade properties, including the influential Berzerk. In October, Atari also acquired Digital Eclipse, known for its work on Teenage Mutant Ninja Turtles: The Cowabunga Collection.
It’s crucial to note that Atari’s investment does not signify an acquisition, as indicated by their 7.5% stake. Therefore, significant directional changes in tinyBuild’s operations due to this deal are not anticipated. However, the gaming community is eagerly awaiting the outcomes of Atari’s investment and the future plans of tinyBuild.
Source link
