×

Epic Games Gets $1.25 Billion Investment From KKR, Six Others

Epic Games, creators of the Unreal Game engine used for developing video games and popular battle royale title “Fortnite,” received a $1.25 billion investment from more than a half-dozen investment firms, the company announced Friday.

KKR, ICONIQ Capital, Smash Ventures, aXiomatic, Vulcan Capital, Kleiner Perkins, and Lightspeed Venture Partners investment in Epic will create “powerful partnerships with highly strategic investment firms and individuals at the forefront of technology, entertainment, professional sports, esports, and live events,” according to the company.

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

“We’re excited to partner with the finest minds in the financial, sports, and entertainment communities. This reinforces Epic’s position of leadership in real-time 3D technology, and accelerates our ability to improve the way people play, work, and interact with the world,” said Sweeney.

Tencent purchased about 40 percent of Epic Games with a $330 million investment in 2012. The acquisition led to Tencent appointing two representatives to the Epic board of directors. It’s unclear if this latest investment led to a change in the board’s makeup. That 2012 investment led to a number of high profile people leaving Epic Games including “Gears of War” producer Rod Fergusson, Cliff Bleszinkski, and Epic Games president Mike Capps.  It also had a fundamental impact on the way the company developed and released games, which in turn led to the development of “Fortnite” and eventual inclusion of the battle royale mode which pushed the company’s value into the billions.

Popular on Variety

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

The Raine Group and Guggenheim Securities, LLC are acting as financial advisors to Epic Games. Smith Anderson is acting as legal advisor to Epic Games.

More Gaming

  • Activision-Blizzard-Overwatch-League-Grand-Finals-2018

    YouTube Scores Exclusive Streaming for Activision Blizzard's E-Sports, Including Overwatch and Call of Duty Leagues

    YouTube landed a multiyear deal as the exclusive live-streaming partner for Activision Blizzard’s e-sports events worldwide, including Overwatch League, Call of Duty League, Hearthstone Esports. The agreement (which excludes China) promises to give a big boost to YouTube Gaming, the video giant’s dedicated home for all things related to games. It’s also a loss for [...]

  • Conan Unconquered

    Tencent Bids for Control of Funcom 'Conan' Games Developer

    China’s social media and gaming giant Tencent is bidding to buy control of Funcom, developer of the “Conan” and “Dune” games. The bid values the Norwegian company at $148 million. Tencent already owns 29% of Funcom, and its bid has been unanimously approved by Funcom’s board of directors. No management changes are planned. The shares [...]

  • 100 Thieves

    Esports Organization 100 Thieves Unveils New Facility in Los Angeles

    As of Wednesday, popular esports organization 100 Thieves has an official home in Los Angeles. The group unveiled its new 15,000 square-foot facility, officially named the 100 Thieves Cash App Compound, in a media preview with some of its biggest personalities and investor Scooter Braun on hand. Also in attendance was Jack Dorsey, the CEO [...]

  • Marvel-Strike-Force-FoxNext

    Disney Sells FoxNext Games Unit to Scopely

    Disney has sold off FoxNext Games, the studio it obtained through the purchase of 20th Century Fox, to mobile-games developer Scopely. Terms of the pact were not disclosed. Under the terms of the pact, Scopely is acquiring FoxNext Games Los Angeles, the game studio behind hit game “Marvel Strike Force,” and San Jose-based Cold Iron [...]

  • Call of Duty The Campaign

    Watch the First Episode of New Call of Duty League Docuseries 'The Campaign' (EXCLUSIVE)

    Even a new league comes with history. That’s one of the takeaways from the first episode of “The Campaign,” which follows the Chicago Huntsmen in the lead-up to Activision Blizzard’s new franchised Call of Duty League. Variety is debuting the first episode exclusively, which details some of the narrative that follows the Huntsmen (based in [...]

  • Vindex - Imax

    Imax Jumps Into Esports in Exclusive Pact With Startup Vindex

    Hold on to your popcorn: An Imax location near you could soon be beaming live competitive video-game action onto its big screens. Imax has inked a partnership with Vindex (vindex.gg), an esports infrastructure startup formed by Major League Gaming co-founders Mike Sepso and Sundance DiGiovanni, under which Vindex will create esports events and experiences exclusively [...]

More From Our Brands

Access exclusive content