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Epic Games Inc., the creator of the hit video game "Fortnite", is valued at nearly $ 15 billion as part of a major new investment cycle, according to people close to the record.
The company said Friday it received an investment of about $ 1.25 billion. Epic did not specify whether it raised new capital or whether prior holders had sold existing shares. At least part of the investment comes from the sale of shares by existing holders, people said.
Epic does not have any other comments on the investment.
New investors include traditional venture capital firms
KKR
,
KKR -2.15%
Kleiner Perkins and Lightspeed Venture Partners, as well as aXiomatic, owner of the competitive Team Liquid video game organization. Epic already has China
Tencent Holdings
Ltd.
TCEHY -5.20%
and
Walt Disney
Co.
as investors.
"Fortnite" has climbed to the top of an industry of over $ 100 billion giving a cartoon twist to the genre of the classic shooter. In its "Battle Royale" mode, 100 players face each other to become the last team or the last player standing, instead of players constantly moving on a battlefield.
Epic released the free mode, but earns money selling virtual costumes and dance moves for the characters in the game. According to SuperData estimates, the company has earned more than a billion dollars in revenue to these so-called microtransactions.
The popularity of the game has fueled a cottage industry consisting of video game teachers and game modes in new games from major competitors such as
Activision Blizzard
Inc.
In his report on earnings this week,
Microsoft
Corp.
Fortnite, whose name has been verified, has contributed to the strong profitability of its games division.
"Fortnite" had attracted more than 125 million players in July, according to Epic. After conquering basements and lounges, the company plans to engage more in the competitive game, called esports. Epic recently announced a $ 100 million contribution in the form of the Fortnite Award.
"They built a sustainable business," said Tim O'Shea, an analyst at Jefferies. "Fortnite" is no longer "as hot as in summer, but [Epic is] always very good. No doubt people will play this game for years. "
Write to Sarah E. Needleman at [email protected] and Katie Roof at [email protected]
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