Thursday, April 15th 2021
Epic Games Announces $1 Billion Funding Round
Today 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 is now $28.7 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.
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.
15 Comments on Epic Games Announces $1 Billion Funding Round
Nevertheless, this is how these things seem to go these days. Need big capital to rule world. And when you do, profit. Its how Facebook, Google, Netflix, Twitter, etc etc have all done it. We now know what the price of free really was, there, for some of those services and companies. A price gets paid.
As long as that price is paid by investors all I can say is: 'lets profit'.
Get those free games :)
Never buying anything from Epic.
I can't wait to see what happens next....
Best,
Liquid Cool
Would you be happy you can't play any of your EPIC games If they do go out of business?
Steam requires explicit opt-out to keep it from automatically logging in. Also, users are constantly being triggered to either opt out of that or get automatic login by designating machines as trusted devices, to avoid the 2FA check. The vast majority, esp less advanced users will automate that.
So yeah. Steams data on activity... much like its survey is grossly misleading as a data set to measure actual platform success.
EGS is not that different btw.
The legalese about this is uncharted territory but rest assured customers will need to be compensated. Example: the creator of the product enables your license on its own launcher or services, or pays another distributor to do it for them.
A software license is literally a form of ownership. Its one big reason to stay far away from cloud based gaming because that principle does not apply there. On cloud services you are just a subscriber and all you get is temporary and no ownership is involved.
And if you are not partial to that idea, then every on-demand service is literally the same. They can all go under, Steam included, and when they do, it tends to happen quite suddenly. Life is full of risk that way. The entire society is built on agreements, after all, and they all work because we have some baseline of trust in those agreements to be honored. And if you don't trust that idea, there is always GOG.