Epic Games Announces $1 Billion Funding Round

by Hilbert Hagedoorn on: 04/15/2021 04:50 PM | source: | 14 comment(s)

Shortly after it's revealed that Epic likely won't make a profit until at least 2027, Epic Games announced that it completed a $1 billion round of funding, which will allow the company to support future growth opportunities. Epic's equity valuation now reaches close to $29 billion.

This round includes an additional $200M strategic investment from Sony Group Corporation, which builds on the already close relationship between the two companies and reinforces their shared mission to advance the state of the art in technology, entertainment, and socially-connected online services. Other investment partners include Appaloosa, Baillie Gifford, Fidelity Management & Research Company LLC, GIC, funds and accounts advised by T. Rowe Price Associates, Ontario Teachers' Pension Plan Board, funds and accounts managed by BlackRock, Park West, KKR, AllianceBernstein, Altimeter, Franklin Templeton and Luxor Capital. Epic continues to have only a single class of common stock outstanding and CEO Tim Sweeney remains the controlling shareholder of the company.

"We are grateful to our new and existing investors who support our vision for Epic and the Metaverse. Their investment will help accelerate our work around building connected social experiences in Fortnite, Rocket League and Fall Guys, while empowering game developers and creators with Unreal Engine, Epic Online Services and the Epic Games Store," said Tim Sweeney, CEO and Founder, Epic Games.

"Epic continues to deliver revolutionary experiences through their array of cutting edge technologies that support creators in gaming and across the digital entertainment industry. We are excited to strengthen our collaboration to bring new entertainment experiences to people around the world. I strongly believe that this aligns with our purpose to fill the world with emotion, through the power of creativity and technology," said Kenichiro Yoshida, Chairman, President and CEO, Sony Group Corporation.

Credit Suisse and BoFA Securities acted as joint placement agents to Epic, and Wilson Sonsini Goodrich & Rosati provided legal counsel to Epic.

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XP-200
Senior Member

Posts: 6038
Joined: 2003-04-05

#5905712 Posted on: 04/18/2021 02:44 PM

Store burns money.
Unreal engine earns money.
Company was valued at 1/3 less than a year ago, where did the 10 billion jump come from (valued at less than 20b in June)?

Honestly, I think companies going in now just wait for the public IPO (aimed at by Epic in 2022), so that poor small cap investors see that the invested 1 billion rise in share price to probably 1.2 or something via stock prices like that.

And that's actually a tough gamble, since those companies will want their money's worth returned with a profit eventually.

I give Epic until 2023 and then Valve will swoop in and buy them up hook line and sinker for a song, as they hemorrhage money for the last time and no one wants them. lol

fantaskarsef
Senior Member

Posts: 14314
Joined: 2014-07-21

#5905723 Posted on: 04/18/2021 04:23 PM

I give Epic until 2023 and then Valve will swoop in and buy them up hook line and sinker for a song, as they hemorrhage money for the last time and no one wants them. lol

While that idea is amusing, I'm seriously asking myself, with an inflow of $1 billion, they sure want something in return for their money. When's the deadline? And how harsh is it? This would be what I'd like to know. Since then you'd know how and when the sharks will smell any blood, if there is any

tsunami231
Senior Member

Posts: 13562
Joined: 2003-05-24

#5905744 Posted on: 04/18/2021 06:26 PM

EpicFail.

Only thing that keeps epic afloat is unreal engine, if it was not for that they would not even be able to do the things they in there store.

The whole exclusive BS they pulling games exlusive to there store is enough for me to not like them.

PC game should be available to ALL on ALL STORE platforms

fantaskarsef
Senior Member

Posts: 14314
Joined: 2014-07-21

#5905764 Posted on: 04/18/2021 07:42 PM

Watched this video and it's quite easy:

Fortnite still keeps Epic afloat. Interesting.

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