Epic Games Gets Another $1 Billion in Funding
Interest in Epic Games stock has been sky high for a while now, even though the company doesn’t currently have any plans to go public. And after the video game maker’s announcement that it has secured yet another $1 billion in funding, investors are going to be salivating even more for an Epic Games IPO.
The video game company—which has created popular games including Fortnite, Gears of War, and Infinity Blade—said today that it raised an additional $1 billion in a recent funding round, pushing its valuation up to $28.7 billion.
Tim Sweeney, the founder and CEO of Epic Games, said in a statement that the new 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.”
A good chunk of the cash—$200 million to be exact—came from Sony Group Corporation. Epic said it already has a “close relationship” with Sony and that the two companies have a “shared mission to advance the state of the art in technology, entertainment, and socially-connected online services.”
Epic’s Valuation Just Spiked 66%
Less than one year ago, Epic Games was valued at $17.3 billion and had raised about $3.4 billion since it was founded. With the company’s latest funding round, Epic’s valuation has jumped 66% in just eight months.
It’s unclear whether or not the company will have any more funding rounds in the future, but with its latest $1 billion round, the company has more than enough cash to continue growing its business for a while.
The Money Comes Just as Epic Is Gearing Up for Its Fight With Apple
You may recall that Epic made headlines last year when the company implemented its own payment system into Fortnite in an effort to work around Apple and Google’s in-app purchasing systems.
Apple and Google didn’t exactly appreciate the move and booted Fortnite from their app stores.
Epic will head to the courtroom to take on Apple next month, in what will be a closely watched battle. The video game company thinks Apple is taking more than its fair share by taking a significant cut of all the purchases that occur when users are playing Fortnite.
Last year Apple backed off of its longstanding position of charging 30% for in-app purchases for developers who make less than $1 million in revenue. Instead, it now charges them 15%. But Epic makes far more than that, so the company pays the higher percentage.
The Latest Round Shows Epic Hasn’t Lost Any Goodwill
Epic has attracted a very impressive group of investors over the years, including Disney, Sony, and Tencent. And despite its upcoming showdown with Apple, Epic Games’s huge funding round shows that the company hasn’t lost any goodwill with its private investors.
Retail investors like you and me, however, will have to continue waiting on the sidelines for this video game giant to go public. And with the company’s latest influx of cash, it might be a while before Epic Games decides that moving to the public market is the right move.
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