Report: Epic Games Close to Raising a $750M Financing Round at a $17B Valuation

Report: Epic Games Close to Raising a $750M Financing Round at a $17B Valuation

Fortnite and Unreal Engine maker Epic Games is close to raising a $750M USD investment round at a company valuation of approximately $17B, according to Bloomberg. Reportedly, existing investor Kohlberg Kravis Roberts & Co. (KKR & Co.), and new investors T. Rowe Price Group and Baillie Gifford will participate in the financing round.

Epic Games, which was founded in 1991 by Tim Sweeney, previously raised a $1.25B funding round from KKR & Co., ICONIQ Capital, Smash Ventures, aXiomatic, Vulcan Capital, Kleiner Perkins, and Lightspeed Venture Partners in October 2018 at a $15B valuation. In 2012, Chinese internet conglomerate Tencent acquired a 40% stake in Epic Games, making it the second-largest shareholder in the company after its founder Sweeney. Other minority shareholders include Walt Disney and Endeavour Group Holdings.

Over the last 24 months, Epic Games made several strategic acquisitions including Psyonix, the developer of vehicular soccer game Rocket League; and Houseparty, a video call app with game integrations that has drastically increased in popularity during the ongoing COVID-19 pandemic.

Bloomberg’s original report claims that the investment is yet to be finalized and some of the details could still change. The Esports Observer has reached out to Epic Games for comment on the potential transaction.