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Byju Raveendran noted that the company expanded too fast in over 21 countries, driven by the pressure from investors.
Byju Raveendran accepted earlier his mistake for expanding too fast globally.
Byju’s US Subsidiaries Sale: The financially troubled Indian tech firm Byju’s has taken the first step to liquidate the assets abroad. It offloaded its US-based subsidiaries, Epic and Tynker, as part of its US Bankruptcy proceedings. Epic was sold to the Chinese education firm TAL Education Group for $95 million, while CodeHS acquired Tynker for $2.2 million in cash. Both sales were approved by US Bankruptcy Judge Brendan Shannon on May 20, aimed at helping lenders recover losses from a $1.2 billion term loan extended to Byju’s.
Asset Sales Highlight Financial Decline
Byju’s originally purchased Tynker in 2021 for around $200 million and Epic for about $500 million the same year. The significantly lower sale prices reflect the steep devaluation of the company’s global portfolio. EdWeek Market Brief reported that Tynker’s sale resulted from 48 rounds of competitive bidding between CodeHS, operating through a new entity named Tynker Holdings, and another bidder, Future Minds. Jeremy Keeshin, the CEO of CodeHS and the sole member of Tynker Holdings, stated that this acquisition would enable CodeHS to support learners from basic coding to advanced computer science.
Department Of Justice Intervention
Epic’s sale encountered a last-minute intervention from the US Department of Justice, which highlighted the potential need for a review by the Committee on Foreign Investment in the United States (CFIUS) due to the Chinese ownership of the buyer. Judge Shannon described the event as a “fire drill,” but the sale ultimately proceeded.
Byju Raveendran Accepts His Big Mistake
Byju’s founder Byju Raveendran earlier acknowledged that a significant mistake the company made was opting for a $1.2 billion term loan in 2021, despite having adequate equity funding options. He also noted that the company expanded too fast in over 21 countries, driven by the pressure from investors.
In an interview with ANI, Raveendran explained that the decision, made collectively with board members including investor and founder directors, was not a result of desperation, as the company had previously raised $5 billion.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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