Epic is now valued at $31.5 billion, after the Kirk Christiansen family’s holding company Sony and Kirkby A/S, according to a statement.
The company, which also counts The Walt Disney Company and China’s Tencent Holdings Ltd among its investors, was valued at $28.7 billion as of last April. Its chief executive, Tim Sweeney, remains the company’s controlling shareholder.
The funding will support the company’s goal of using the metaverse—a term used to describe a virtual environment in which people can use digital avatars to work, play, and shop—and further its continued growth, the company said. Will increase
“As we re-imagine the future of entertainment and sport, we need partners who share our vision. We have found this in our partnership with Sony and Kirkby,” said Mr. Sweeney.
According to research firm Pitchbook Data Inc., the $2 billion investment in Epic is the largest in the gaming space since 2002. The last three biggest investments were also in Epic, which topped the list before Monday with $1.78 billion.
The latest funding round comes days after Epic and Lego Group, which are 75% owned by Kirkby, said they are partnering to create a version of the Metaverse that is kid- and family-friendly.
Epic’s latest valuation will be closely watched by investors after a string of recent deals in the videogame space this year. In January, Microsoft Corp. Activision Blizzard Inc. in a cash deal worth approximately $75 billion. Later that month, Sony’s videogame unit said it would buy videogame developer Bungie Inc. in a deal worth $3.6 billion.
Sony and Kirkby’s investment in Epic is worthwhile in and of itself and by industry standards “because there have been very few billion-dollar deals in India. [the] games industry,” said Martin Yang, executive director of investment bank Oppenheimer & Co. The average size of gaming-industry investments is typically in the tens of millions, with some in the hundreds of millions considered rare, sizable investments, added Mr. Yang.
Josh Chapman, a managing partner at Convoy Ventures, a venture-capital firm that invests exclusively in the videogame industry, said the size of Sony and Kirkby’s investments is scarce, but not out of the question for Epic because it offers capital for a Gathering. for a long time.
“It’s definitely a huge transaction that means a lot to Epic by bringing LEGO.” [intellectual property] Plus all Sony assets,” said Mr. Chapman.
The videogame marketplace has soared to new heights after more people turned to it during the COVID-19 pandemic, prompting companies to capitalize on the recent momentum.
Sony said in late March that its videogames unit was expanding its subscription option, which is gaining prominence across the industry as a way to lock players into specific hardware, franchises and apps. Microsoft has offered a single subscription service since 2017. Both companies see cloud gaming, also known as game streaming, as the future of game distribution.
As Mr. Sweeney’s company has grown, he has also taken over two of the world’s biggest technology companies. Epic is Apple Inc. in August 2020 after two companies pulled “Fortnite” from its App Store. and Alphabet Inc. K has been in legal disputes with Google. The move comes after Epic introduced a new way to make in-game purchases. Digital transactions within apps bypassed the deduction being made by the tech giant.
Apple argued last month that a judge’s decision in an appeals battle with Epic should be reversed.
“Fortnite” quickly became a global phenomenon after its debut in 2017. While it is best known for its free “Battle Royale” mode, where 100 players duke it out until only one fighter or squad remains, it is also home to concerts, movies, and more. and designated areas only for socialization. Epic said “Fortnite” had more than 350 million registered users in 2020.
Epic said in March that it was committing the proceeds from “Fortnite” to humanitarian relief for those affected by the war in Ukraine. It said it raised a total of $144 million.
Epic was founded in 1991. In addition to the shooter game “Fortnite”, it makes Unreal Engine, a suite of software tools for developing video games and creating special effects for television shows, movies and other types of digital content. It’s also the owner of the studio behind hit games like “Rocket League” and “Fall Guys: Ultimate Knockout.”
This story has been published without modification to the text from a wire agency feed