Thursday 6 August 2020 3:54 pm

Fortnite creator Epic Games raises $1.78bn

Epic Games, the firm behind the popular online multiplayer game Fortnite, said today it has raised $1.78bn in its latest funding round, taking its valuation to $17.3bn.

The latest funding round includes the $250m investment made by electronics giant Sony last month for a reported 1.4 per cent stake in the company.

Other new investors in the round included funds managed by Blackrock, Baillie Gifford, Fidelity and and SpaceX backer Ontario Teachers’ Pension Plan Board. 

Read more: Sony injects $250m into Fortnite creator Epic Games

Existing backers KKR and Smash Ventures also participated.

“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,” said Epic Games founder and chief executive Tim Sweeney.

“We are delighted to have them as part of the Epic family.”

The round comes as spending on video games surges during a time of global quarantine, with figures in the US for June surging 26 per cent to $1.2bn — the highest for the month in over a decade.

Read more: Animal Crossing powers five-fold profit jump for Nintendo

Console maker Nintendo reported a five-fold profit jump in the most recent quarter this morning, similarly buoyed by a rise in customers as people stay at home.

Epic Games’ $17.3 billion valuation marks a more than 15 per cent rise on its last public valuation of $15bn back in 2018.

The games maker said Sweeney still maintains control of the business, while Chinese media giant Tencent also holds a minority stake in the firm.