tinyBuild Sells Red Cerberus Subsidiary
Why we think this is good
The sale of Red Cerberus, a subsidiary of tinyBuild, Inc., appears to be a positive move for the company. The disposal will be marginally accretive in 2025 and the proceeds will be used for general working capital purposes. The sale price of $1.5m is reasonable compared to the subsidiary's book value of $0.8m. Overall, this transaction seems to be a sensible strategic decision by the company.
Key Points
- tinyBuild has sold its Red Cerberus subsidiary for $1.5m in cash
- The disposal will be marginally accretive in 2025
- Proceeds will be used for general working capital purposes
- Red Cerberus had a book value of $0.8m and generated $4.3m in revenues in 2024
Summary
tinyBuild, Inc. has announced the disposal of its Red Cerberus subsidiary to a North American consultive software and hardware company. The total consideration is $1.5m in cash, payable on completion, subject to standard net working capital adjustments. The disposal will be marginally accretive in 2025 and the proceeds shall be used for general working capital purposes. Red Cerberus, based in Sao Paolo Brazil, provides quality assurance, testing and localization to video game studios. It had a book value of $0.8m as of 31 December 2024 and generated $4.3m in revenues and a net loss of $0.1m in the 2024 financial year (unaudited).