Epic Games, maker of the colossal hit Fortnite, said on Tuesday (April 13) that its latest funding round has raised $1 billion, bringing the gaming company’s valuation to $28.7 billion.
As PYMNTS reported last month, Epic set out to raise $1.7 billion, double the amount it raised in 2019, mostly from mutual funds and institutional investors. According to Reuters, Epic received $200 million from minority shareholder Sony Group Corp, while also raising funds from investors such as Appaloosa, Baillie Gifford and KKR & Co Inc.
“Their investment will help accelerate our work around building connected social experiences in Fortnite, Rocket League and Fall Guys, while empowering game developers and creators with Unreal Engine, Epic Online Services and the Epic Games Store,” said Epic CEO Tim Sweeney.
Four years after its launch, the free-to-play battle-royale game Fortnite has amassed a gigantic fanbase among younger players, with more than 160 million users on its PC store.
This news comes as Epic is engaged in a legal battle with Apple following Epic’s launch of its own in-app payment method to avoid paying the 30 percent App Store fee, which led Apple to ban Fortnite from its store. Apple has said it will argue that it has a wealth of competition in the gaming world as it tries to refute the antitrust allegations leveled by Epic. The company will say that the 30 percent commission it charges essentially matches Google Play or video game hardware stores. Apple contends that its fee has dropped over time and that its policies have led to a software sector boom as well as more security for users. For its part, Epic says Apple controls the single path to installing software on iPhones through the App Store, and that Apple uses the Apple Review workflow for anti-competitive reasons.
Selected by EFXA