Epic Games has become a force to be reckoned with in the $150 billion gaming industry, thanks to the continued rise in popularity of hit title Fortnite. On Thursday, the company said that it was valued at $17.3 billion after a $1.78 billion round of funding.
The investments came in the form of primary capital and secondary purchases, which means some investors bought new shares while others bought stakes from existing stakeholders. The $250 million strategic investment from Sony Corp., in which Sony obtained a 1.4% stake in Epic Games. The North Carolina based giant also announced some new investors including Baillie Gifford, funds and accounts managed by Fidelity, BlackRock,, the Ontario Teachers’ Pension Plan Board,Lightspeed Venture Partners, funds and accounts advised by billionaire hedge fund manager David Tepper and T. Rowe Price Associates.
Existing backers KKR and Smash Ventures also increased their holdings, adding to their 2018 investment. In October 2018, Epic Games announced a $1.25 billion in funding from Smash Ventures, KKR, Iconiq Capital,, Vulcan Capital, Kleiner Perkins, aXiomaticand and Lightspeed. In 2012, Chinese internet giant Tencent invested $330 million in Epic Games.
Epic founder and CEO Tim Sweeney said in a statement on Thursday, “Having the support of leaders in the financial community accelerates Epic’s efforts to build a new kind of digital ecosystem using real-time 3D technology, services that connect hundreds of millions of people, and a digital storefront that offers a fair business model. We are delighted to have them as part of the Epic family.” Epic will remain controlled by Sweeney, following the closing of the funding round.
The Battle Royale game, Fortnite now has over 350 million players and has become a big revenue driver for the firm, with a free to play game that generates its income from in-game purchases for cosmetic items like skins. But Epic is also known for its unreal gaming software, which powers many of the world’s top games. The company also runs an online video games store that competes with Valve’s Steam.
Epic’s $17.3 billion valuation represents a roughly 15% climb from the $15 billion the company was worth in 2018. It’s not clear yet whether the company has any plans to go public yet. The video game industry has experienced a boom in demand as players across all nations have turned to gaming and other sorts as a medium to escape from the face of the COVID-19 pandemic. For more updates on stories related to gaming, keep reading GutshotMagazine.com and stay tuned!