"Triangle reaction to Epic Games" epic $1.25B funding?
Epic Games, the engine maker and game developer-publisher behind Fortnite, has secured $1.25 billion in funding from investors KKR, ICONIQ Capital, Smash Ventures, aXiomatic, Vulcan Capital, Kleiner Perkins, and Lightspeed Venture Partners.
Released in 2017, "Fortnite" helped popularize the "battle royale" gaming segment.
Two of the firms have known ties to the esports industry: aXiomatic is the parent company of Team Liquid , which yesterday announced a $26M funding round including retired National Basketball Association star, Michael Jordan. Although it's not yet been mentioned what the money will be specifically used for, it is likely that Fortnite's development team will receive an impressive chunk of it. Not only that, but with the new round of funding, WSJ reports that Epic Games, which is based in Cary, North Carolina, is now valued at a massive $15 billion.
Epic, which counts Tencent, Walt Disney Co DIS.N and Endeavor among its minority shareholders, was estimated to be worth $4.5 billion by Jefferies analyst Tim O'Shea in May. He previously sold a 40 per cent piece of the company to Chinese Internet giant Tencent Holdings in 2012.
The company behind the viral video game "Fortnite" just got a major vote of confidence from private equity firms. While many tech companies have promoted social tools for years, Fortnite has proven to be a potent gathering place, keeping games in its environment for hours at a time, offering Epic extensive revenue-generating opportunities.