Epic Games Inc., the video game giant and the creator of Fortnite, has attracted another heavy round of investments and has managed to raise a total of USD 1.78 billion, which pushes the company’s valuation to a massive USD 17.3 billion.
Based in The Cary, North Carolina, the video game firm stated that the investment came in the form of primary capital, where some investors bought new shares and in form of secondary purchases, where others bought stakes from current shareholders.
Sources cite that the investment also included last month’s announced USD 250 million investment from Sony. The company announced diverse new investor names such as Fidelity, BlackRock, Lightspeed Venture Partners, the Ontario Teachers’ Pension Plan Board, while existing investors such as Smash Ventures and KKR also increased their holdings.
Epic also confirmed that it will continue to function under the guidance of company CEO Tim Sweeney and will only have a single class of common stock outstanding.
The company has taken a unique stand in the $150 billion gaming industry which can be attributed to the continued rise in popularity of Fortnite. The Battle Royale game now has registered more than 350 million players.
There has been a boom in demand from consumers towards interactive entertainment for escapism in the face of the coronavirus pandemic. For Instance, Nintendo delivered a 428% rise in operating profit for its fiscal quarter as sales of its Animal Crossing: New Horizons game has nearly doubled.
Epic’s USD 17.3 billion current valuations represent a climb of more than 15% which in 2018 was USD 15 billion. Epic founder and CEO Tim Sweeney said that the support from financial community has accelerated Epic’s efforts to build a digital ecosystem using real-time 3D technology, with the purpose to connect hundreds of millions of people, and a digital storefront that offers a fair business model.