The companies Atari and tinyBuild have entered into a strategic partnership. As part of this, Atari will invest $2 million in the publisher of Hello Neighbor and will become the owner of approximately 7.5% of tinyBuild.

Hello Neighbor 2

tinyBuild announced the deal in an investor note. In the same note, the company revealed that it plans to issue new shares worth $12 million. This will help strengthen its financial position.

Before concluding the deal and issuing the shares, tinyBuild must obtain investor consent. An extraordinary meeting with them is scheduled for January 18, 2024.

tinyBuild decided to raise additional funds due to financial problems. In June, the company reported that its performance in the first half of 2023 fell short of expectations (note: as later revealed, tinyBuild incurred 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 cease publishing games from third-party developers and did not rule out potential restructuring in the future. Following the report, the company's stock price plummeted. Currently, tinyBuild's value is 96.5% less than it was in January 2023.

tinyBuild stock price dynamics from January 1 to December 21, 2023

tinyBuild's recent decision has already reflected well on the company's shares. At the time of writing, they are trading at £0.04 ($0.05) each, which is 71% higher than in recent days.

tinyBuild stock price dynamics from December 15 to December 21, 2023