Announcing a New Funding Round of $1 Billion to Support Epic’s Long-Term Vision for the Metaverse

From Epic Games: "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."

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Christopher26d ago

$200m from Sony. I get why, I just don't like it. That's 3-4 new IP possibilities and maybe even a new studio. But, keeping Fortnite popular on PS helps Sony a ton.

dazsarge26d ago

It goes beyond Fortnite. Unreal Engine is used in games, anime, movies and also television which makes this partnership attractive for both companies.

Christopher26d ago (Edited 26d ago )

Sony pays to use Unreal Engine in their games if they use it and Epic Games makes money off of that. It's not like Sony is investing $200m in other engine tools. People pay to use those engines/tools and that's how they get funded. But Sony just throwing in $200m is less about Unreal and more about marketing.

That's like a business giving more money to Microsoft to continue to develop Microsoft Office when they already pay for 200+ licenses for Microsoft Office.

26d ago
jukins26d ago

@Christopher lol why would all these hedge funds and corporations invest all this money...for marketing..$200 million to market epic games? Lol no its an investment that will reward sony , if it goes right, in multiple ways including financially and technically.

Just having the biggest game engine basically tailored to your console is a huge plus and things will only go further with the investment. In turn could see some future ps games release only on epic games store if they get a pc version. Lots of reolvong relationships to be formed. But you settled...on marketing

Christopher26d ago

***Lol no its an investment that will reward sony , if it goes right, in multiple ways including financially and technically.***

You do know I never said it wasn't an investment, right? I just disagree that the money is really to support the engine rather just a way to ensure other benefits associated with the investment.

Please show me where I said this wasn't an investment or that it wouldn't benefit Sony.

+ Show (1) more replyLast reply 26d ago
jukins26d ago

Lol sony has already said they spent 300 million on 3rd party exclusives for 2021 onto 2022..

Itz also been revealed at least 3 new ips are coming exclusive that we havent heard of not to mention games like kena and forsaken.

Sony may not be microsoft but they can easily sling around money in multiple avenues..

Christopher26d ago

Who are you replying to? Did I say Sony was poor or did I say that money spent could have made more games? This investment isn't going to change what games do to PS5, it just adds some exclusive content offerings. It also isn't preventing those games from going to XSX or Switch. I find it to be a better investment in creating something new, not paying for a little extra for something that your consumers will already have access to.

Tech525d ago (Edited 25d ago )

"This round includes an additional $200M strategic investment from Sony Group Corporation"

interesting. Just a few days ago epic reported a couple annual losses in other divisions. now their losses have been sustainably covered through more investments. and to think epic was going to be effected, judging by all the comments and votes.

N4G - Christopher -
"Did anyone really expect them to be making tons of money with all the free games they throw out there? Obviously Fortnite is funding their foothold here.

Too bad Epic can't lose $10 million more to improve the store with features that have been on Steam (and GOG) for ages now."

DSOGaming -

zawepa25d ago (Edited 25d ago )

@ tech -
"and to think epic was going to be effected, judging by all the comments and votes."
"DSOGaming -"

If anything it certainly is sad that some communities would even gloat over pirating their games thinking this would make a dent to epic; only to have a company like sony make another strategic and generous investment back into the company days later. reducing their efforts.

jukins25d ago

No but you did say "why spend $200 million thats like 3 or 4 new ip possibilities" and as i said they already invested way more that in new ips. The way you were "against" sony spending money to invest in sony indicates that they cant do both imo.

And i dont think i said anything about games not being on xsx. And im not sure how this wouldnt change how games run on ps5..even before this investment was the newest version of the most popular game engine not debuted and custom tailored to a ps5? Even though the industry will all use the engine having a a direct multifacted relationship with the creator only benefits you.

Using the ps3 as an example. Tonz of teams struggled with the ps3 until sony decided to form a team with thebzoke purpose of helping devs with cell architecture. Nothing like having direct connection to the source.

+ Show (1) more replyLast reply 25d ago
Magic_Spatula25d ago

Sony gets to use Unreal probably without paying the fees. Epic gets Sony exclusives or published games on PC like what's going on right now. It's a win-win for both companies.

Christopher25d ago

I highly doubt that. Let alone how many Sony games use unreal considering their two largest studios have custom in-house engines?

jukins25d ago

Thats exactly why it's will mostly use its own engine. But it benefits them to have teams accustomed to multiple if not at least the most popular outsourced engine. So epic letting a team or two have free access to all tools and perphaps specialized human support isnt s crazy idea I i dont care who you are $400 million invested buys you favors

-Foxtrot26d ago

Look I understand why they did it but that much just feels thrown away when they could have made a new IP or revived an old one. Hell put it towards buying a studio or something.

I wouldn't mind if Epic were known for their big single player focused games but they are mostly all online things.

RaidenBlack26d ago

I would like a return of Unreal (single-player) and Unreal Tournament.

PitbullMonster26d ago

You know that big companies invest in things to get more money back, right?

italiangamer26d ago

The $200 million (and the previous 250) comes directly from Sony Corporation as a whole, not the SIE division. Epic owns companies that works in movies special effects, they own RAD games tools etc.. so they are involved in multiple sectors in which Sony has an interest in.

Knightofelemia26d ago (Edited 26d ago )

I wonder how many shares Sony Corporation got in this little investment no one hands over 200 Million with out getting something in return.

darthv7226d ago

Whatever it is, it's likely not to amount to very much in terms of a future takeover (if that was what you were thinking might happen). Tencent owns Epic and they are bigger than Sony so there is likely no chance Tencent is giving them up that easily.

RaidenBlack26d ago

Epic is worth almost $30 billion now.

Redemption-6426d ago

Actually they don't, Tencent owns about 40% of epic. Tim still owns more of the company.

jznrpg26d ago (Edited 26d ago )

Tencent owns 40% of Epic and you need over 50% to have control and to be able to takeover . So yes they own a good chunk of Epic but they arent full owners . They have other companies invest in them to keep a company like Tencent from trying to takeover but I doubt the government would let that happen anyway .

darthv7226d ago

^ahh thanks for clarifying. I wasn't sure but I knew Tencent was a major player.

jukins25d ago

Yea i was gonna say Sweeney has controlling interest

+ Show (2) more repliesLast reply 25d ago
Spenok25d ago

A different article says the 250 mil they put into it last year gave them a 1.4% stake. So they're likely at like 2.2 or so now.

Profchaos25d ago

Sounds like we could see more Sony IP end up exclusive in epic store on the PC

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