Epic Games Receives $ 1.25 Billion Investment From Seven Companies – Variety

Epic Games, the creators of the Unreal Game engine used to develop video games and the popular Fortnite battle title, received a $ 1.25 billion investment from more than half a dozen companies worldwide. Investment, announced the company Friday.

KKR, ICONIQ Capital, Smash Ventures, AXIomatic, Vulcan Capital, Kleiner Perkins and Lightspeed Venture Partners' investments in Epic will create "powerful partnerships with highly strategic investment companies and leading edge technology, entertainment, of professional sports, sports events, "according to the company.

The seven investors join Tencent, Disney and Endeavor as minority shareholders in Epic, still controlled by founder and CEO, Tim Sweeney.

"We are excited to work with the best minds in the financial, sports and entertainment industries. This reinforces Epic's leading position in real-time 3D technologies and accelerates our ability to improve the way people play, work and interact with the world, "said Sweeney.

Tencent purchased approximately 40% of Epic Games with an investment of $ 330 million in 2012. This acquisition led Tencent to appoint two representatives to Epic's board of directors. It is unclear whether this latest investment resulted in a change in the composition of the board. This 2012 investment led a large number of celebrities to leave Epic Games, including producer of "Gears of War", Rod Fergusson, Cliff Bleszinkski and Epic Games President Mike Capps. It also had a fundamental impact on how the company developed and published its games, which led to the development of "Fortnite" and the eventual inclusion of the Royal Battle Mode, which allowed the company to win billion.

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"Epic Games has fundamentally changed the interactive entertainment model under the visionary leadership of the company," said Ted Oberwager of KKR. "Alongside a special group of investors, we are excited to support Epic's dedicated employees and the passionate community of players and developers that is at the heart of everything Epic Games does." "

Raine Group and Guggenheim Securities, LLC act as financial advisors for Epic Games. Smith Anderson is acting as legal counsel for Epic Games.