Join gaming leaders online at GamesBeat Summit Next this upcoming November 9-10. Learn more about what comes next. 


Fortnite maker Epic Games is raising $750 million, according to two sources who spoke to GamesBeat. Bloomberg reported the news first, but we have independently confirmed the details in our story.

The deal would give Epic a pre-money valuation of $16.3 billion, with a post-money valuation (the value of the company after the deal is done) of $17 billion. Epic Games is the developer and publisher of Fortnite, which has more than 350 million users. And it is also the creator of the Unreal Engine, a fundamental toolset for building many games (and increasingly, making movies and TV). Epic declined to comment.

Bloomberg said that new investors participating in this round are T. Rowe Price Group and Baillie Gifford. Existing investors KKR & Co. will also participate, Bloomberg reported, citing unnamed sources.

The deal also gives us a window into the company’s current financial picture, as the privately held Epic does not disclose its revenues or profits.

Webinar

Three top investment pros open up about what it takes to get your video game funded.

Watch On Demand
This Lara Croft-like character is not a glimpse at the next Epic Games title.

Above: This Lara Croft-like character is not a glimpse at the next Epic Games title.

Image Credit: Epic Games

In 2019, Epic Games reported $4.2 billion in revenue and $730 million in earnings before interest, 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, thanks to the pandemic, Fortnite revenue was $400 million, sources told me. Epic has said that in April, players spent 3.2 billion hours in the battle royale shooter. Fortnite also garnered a huge amount of attention for staging a virtual Travis Scott concert that drew more than 27 million people.

In 2018, Epic Games did better than it did in 2019. Revenue in 2018 was $5.6 billion. Epic used a lot of that money to invest in its Epic Games Store, expanding its staff for Fortnite and Unreal Engine, and some acquisitions.

The company has raised $1.6 billion to date, including $1.25 billion raised in 2018. Tencent bought 40% of the company in 2012 and it remains a shareholder.

[Update: 8:24 a.m. 6/16/20 Fixing this part: Shareholders is not selling stake. The company is raising funds.]

GamesBeat

GamesBeat's creed when covering the game industry is "where passion meets business." What does this mean? We want to tell you how the news matters to you -- not just as a decision-maker at a game studio, but also as a fan of games. Whether you read our articles, listen to our podcasts, or watch our videos, GamesBeat will help you learn about the industry and enjoy engaging with it. How will you do that? Membership includes access to:
  • Newsletters, such as DeanBeat
  • The wonderful, educational, and fun speakers at our events
  • Networking opportunities
  • Special members-only interviews, chats, and "open office" events with GamesBeat staff
  • Chatting with community members, GamesBeat staff, and other guests in our Discord
  • And maybe even a fun prize or two
  • Introductions to like-minded parties
Become a member