Epic Games plans to raise funding of US $ 750 million. After getting the injection of funds, Epic valuation will rise to US $ 17 billion from US $ 16.3 billion. According to a Bloomberg report, two new investors interested in supporting Epic are T. Rowe Price Group and Baillie Gifford. In addition, KKR & Co., who are Epic’s longtime investors, will also take part in this funding round.
Epic Games was founded in 1991 by Tim Sweeney who now serves as CEO. In 2012, Tencent acquired 40 percent of Epic shares, making them the second largest shareholder after Sweeney. In addition to Tencent, Walt Disney and Endeavor Group Holdings also become minority shareholders in Epic. In 2018, Epic received an investment of US $ 1.25 billion, bringing the company’s valuation to US $ 15 billion.
Aside from being an Unreal Engine creator, Epic Games is also known as a developer and publisher of Fortnite. The battle royale game now has 350 million players. In April 2020, Fortnite players spent 3.2 billion hours playing the game, earning US $ 400 million for Epic. In 2018, Epic revenue will reach US $ 5.6 billion. Epic revenue decreased in 2019 to US $ 4.2 billion. However, in 2020, it is estimated, Epic revenues will again increase to US $ 5 billion.
At present, Epic uses a lot of their money to develop Epic Games Store, a digital game distribution platform. In May 2020, Epic added a number of features for EGS, such as modding support and a refund system. They also reportedly planned to bring EGS to Android. Their other strategy is to provide free games at EGS. Interestingly, this can actually make game sales on other platforms go up.
They also use Epic funds to increase the number of staff handling Fortnite and the Unreal Engine. In the past year, they have also acquired several companies. One of them is Psyonix, developer of the Rocket League game. Another company they are acquiring is Houseparty, a video call application that is integrated into the game.