Epic Games secure $1.78 billion in funding

Last month we wrote that Sony invested $250 million into game publisher Epic Games. Now there's news from the latter that the Sony investment was part of a broader funding round, which involved a total of $1.78 billion! The funding round values Epic Games at $17.3 billion. The announcement explains the fresh cash will help Epic Games to accelerate its efforts to build a new digital ecosystem with a digital storefront, which basically means Epic Games is redoubling its effort to go after Valve's Steam.

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.