Fortnite maker Epic Games immediately introduced a $1.78 billion funding spherical at a $17.Three billion valuation. The firm mentioned the funding included new capital similar to Sony’s beforehand introduced $250 million funding in addition to secondary purchases from worker fairness holders.
Epic Games is the developer and writer of Fortnite, which has greater than 350 million registered gamers (this doesn’t imply they’re all energetic). And it’s additionally the creator of the Unreal Engine, a basic toolset for constructing many video games (and more and more, making films and TV).
Additional traders embody Baillie Gifford, funds and accounts that Black Rock manages, Fidelity Management & Research Company, Lightspeed Venture Partners, Ontario Teachers’ Pension Plan Board, funds and accounts that T. Rowe Price Associates controls, and David Tepper.
Existing traders KKR and Smash Ventures added to their 2018 funding. It’s not clear how a lot is further funding for the corporate itself and the way a lot of the cash went to shareholders (which Epic recognized as workers) promoting their shares in secondary offers to new shareholders. One Epic shareholder, Endeavor (the Hollywood company and proprietor of UFC) was reported as promoting its stake. Epic Games didn’t touch upon that.
In July, Epic mentioned that Sony purchased a 1.4% stake at a $17 billion post-money valuation. Epic mentioned immediately that CEO Tim Sweeney stays in charge of the corporate and that it has solely a single class of widespread inventory.
In an announcement, Sweeney mentioned, “Having the support of leaders in the financial community accelerates Epic’s efforts to build a new kind of digital ecosystem using real-time 3D technology, services that connect hundreds of millions of people, and a digital storefront that offers a fair business model. We are delighted to have them as part of the Epic family.”
Credit Suisse and The Raine Group acted as joint placement brokers to Epic, and Wilson Sonsini Goodrich & Rosati supplied authorized counsel to Epic.
Privately held Epic doesn’t disclose revenues or earnings. But because it raised cash, we realized from sources that Epic has had a robust monetary report because of Fortnite.
In 2019, Epic Games reported $4.2 billion in income and $730 million in earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA, a key measure of profitability). Revenue for 2020 is forecast to be $5 billion, with EBITDA of $1 billion.
In April alone, because of the pandemic, Fortnite income was $400 million, sources instructed me. Epic has mentioned that in April, gamers spent 3.2 billion hours within the battle royale shooter. Fortnite additionally garnered an enormous quantity of consideration for staging a virtual Travis Scott concert that drew greater than 27 million folks.
In 2018, Epic Games did higher than it did in 2019. Revenue in 2018 was $5.6 billion. Epic used a whole lot of that cash to spend money on its Epic Games Store, increasing its employees for Fortnite and Unreal Engine, and a few acquisitions.