News broke in June 2020 that Epic Games were looking for funding that would value the company at $17B. The first piece of that funding fell into place in July when it was announced that Sony would make a $250M investment in Epic. Today the rest of the dominoes fell into place with the announcement of a total of $17.3B in funding (including the Sony investment), exceeding their target by $800M.
For more details, here is the Epic Games press release:
CARY, N.C. (August 6, 2020) — Epic Games today announced a $1.78 billion round of funding consisting of primary capital and secondary purchases from employee equity holders. Epic’s post-money equity valuation is now $17.3 billion.
This round includes a previously announced $250 million strategic investment from Sony Corporation. Additional investment partners include Baillie Gifford, funds and accounts managed by BlackRock, Fidelity Management & Research Company LLC, Lightspeed Venture Partners, Ontario Teachers’ Pension Plan Board, funds and accounts advised by T. Rowe Price Associates, Inc., and David Tepper. Existing investors KKR and Smash Ventures also added to their 2018 investment. Following the closing of the funding round Epic will continue to have only a single class of common stock outstanding and will remain controlled by its founder and CEO, Tim Sweeney.
“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. We are delighted to have them as part of the Epic family,” said Sweeney.
Credit Suisse and The Raine Group acted as joint placement agents to Epic, and Wilson Sonsini Goodrich & Rosati provided legal counsel to Epic.
You can learn more about this round of funding in the video below.