Animoca Brands forays into edtech with $39m buy

Animoca Brands, a blockchain gaming unicorn, has forayed into the education segment by acquiring Tel Aviv-based edtech platform TinyTap for nearly US$39 million in cash and shares.

Animoca Brands co-founder Yat Siu / Photo credit: SCMP/Getty Images

Under the terms of the acquisition, Animoca Brands issued 2.3 million ordinary shares at a price of A$4.50 (US$3.1) per share, along with cash of US$27.2 million.

The deal, which gives Animoca an 84% stake in TinyTap, will help the former establish a new business segment for user-generated content (UGC) on the blockchain for educational content that will allow educators to generate their own equity.

Founded in 2012, TinyTap is a UGC edtech company that provides a no-code platform, enabling educators to create and distribute interactive educational content while earning a usage-based revenue share.

Photo credit: Animoca Brands

“Educators number among the most prolific creators and traders of content,” said Animoca Brands co-founder Yat Siu. “Despite the fact that teaching is among the most important professions, educators generally struggle with funding and resources.”

Animoca Brands aims to leverage blockchain tech to provide educators with the opportunity to tokenize digital content and rent or sell their content instead of licensing content temporarily.

See also: Animoca’s meteoric rise from zombie to $5b Web3 empire

Additionally, blockchain-based assets have the potential to be interoperable, opening up opportunities for collaborations with other companies and allowing creators to provide their content on different platforms.

TinyTap offers educators an alternative channel to generate revenue. When a subscription is purchased or renewed, the subscription profit is shared with content creators. The earnings of individual content creators are determined by the engagement generated by their content.

Currently, TinyTap content is aimed primarily at children from pre-kindergarten to grade 6, and the company is working on expanding its offering to learners of all ages.

Currency converted from Australian dollar to US dollar: US$1 = A$1.45