Fortnite creator Epic Games' valuation jumps to $29 billion in new funding round

4 weeks ago 7

This illustration representation shows a idiosyncratic waiting for an update of Epic Games' Fortnite connected their smartphone successful Los Angeles connected August 14, 2020.

Chris Delmas | AFP | Getty Images

Epic Games, developer of the fashionable video crippled Fortnite, connected Tuesday said it raised $1 cardinal successful a caller circular of backing that lifts the company's valuation to $28.7 billion.

The Cary, North Carolina-based steadfast said that $200 cardinal of the caller currency raised came from Sony, which had initially invested successful the institution past year. Other investors successful the circular included Appaloosa, Baillie Gifford and Fidelity. Epic's latest marketplace worth represents a 66% summation from what it was worthy successful a $1.8 cardinal deal past year.

"We are grateful to our caller and existing investors who enactment our imaginativeness for Epic and the Metaverse," said Tim Sweeney, CEO and laminitis of Epic Games.

"Their concern volition assistance accelerate our enactment astir gathering connected societal experiences successful Fortnite, Rocket League and Fall Guys, portion empowering crippled developers and creators with Unreal Engine, Epic Online Services and the Epic Games Store." 

Sweeney remains the controlling shareholder of the company, Epic said. Credit Suisse and BofA Securities acted arsenic associated placements to Epic successful its latest financing round, Epic said, portion Wilson Sonsini Goodrich & Rosati provided ineligible counsel.

Epic is simply a large subordinate successful the video games industry. It's conflict royale rubric Fortnite rapidly became a deed erstwhile it released successful 2017 and is present a cultural phenomenon with millions of radical watching others playing the crippled connected streaming platforms and celebrities and influencers promoting it online.

But Epic is known for much than conscionable Fortnite. The company's Unreal crippled motor bundle powers galore of the world's apical games. It besides played a relation successful the film industry's displacement to virtual production during the coronavirus pandemic.

Epic is betting large connected the alleged "metaverse," an informal word utilized to picture a collaborative and immersive virtual world. Fortnite has hosted monolithic virtual concerts with artists similar Travis Scott and Marshmello, for example. Other companies, including Microsoft and Roblox, are besides investing heavy successful this trend.

And Epic has been expanding into different areas, including PC games organisation with its Epic Games Store — a rival to Valve's Steam — and caller content. Last month, Epic announced it had bought Mediatonic, the British workplace down Fall Guys. That crippled became an instant deed erstwhile it launched past summer, attracting millions of players stuck astatine location owed to Covid restrictions.

Over the past year, however, Epic has chiefly drawn headlines owed to its ineligible conflict with Apple implicit the latter's app store policies. Epic tried to debar Apple's 30% App Store interest done a bundle update that efficaciously bypassed the Cupertino, California-based company's ain payments system. Apple responded by removing Fortnite from its App Store.

Last week, the 2 companies laid retired successful abstracted filings what they see to beryllium the cardinal facts and main ineligible issues up of a highly-anticipated antitrust proceedings that's slated to commencement adjacent month.