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Epic Games Inc. is capitalizing on the popularity of 'Fortnite'.
The KKR & Co., Vulcan Capital, Kleiner Perkins and esports startup AXiomatic Gaming has a $ 1.25 billion investment round from a coalition. The various group covers a wide swath of the entertainment world, including technology, traditional sports, esports and live events.
Enlisting new backers is a rare event for the closely held Epic Games, which was founded by Chief Executive Officer Tim Sweeney in his parents' base in 1991. But the success of 'Fortnite' – and its every-man-for-himself approach – has given Sweeney the chance to broaden its investor base. He previously sold a 40 percent piece of the Chinese Internet giant Tencent Holdings Ltd. in 2012.
'Fortnite' has quickly become a cultural phenomenon after the addictive 'battle royale' mode, which lets 100 players compete to be the last person standing on an imaginary island. Rappers and celebrities have embraced the title, and athletes in the World Cup even with a dance from the game. It's also the most popular game to watch on Amazon's Twitch service, though viewership has dropped in recent months.
Other investors in the $ 1.25 trillion round include Lightspeed Venture Partners, Iconiq Capital and Smash Ventures.
'Fortnite' cracked $ 1.2 trillion out of its release and has made a billionaire out of Sweeney, the company's controlling shareholder. Tencent bought 40 percent of Epic at $ 825 million valuation. Walt Disney Co. and Endeavor.
In addition to owning 'Fortnite' and other titles, Cary, North Carolina-based Epic Developed the Unreal Engine – a popular software for game developers. Capcom Co.'s Street Fighter V and Microsoft Corp.'s Gears of War 4. It's also becoming popular beyond gaming: Fox Sports is using the software to power its new virtual studio set.
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