'Fortnite' maker just raised a ton of cash
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The company behind the viral video game “Fortnite” just got a major vote of confidence from private equity firms.
Epic Games raised $1.25 billion in a financing round led by KKR, Smash Ventures, Vulcan Capital and various other investors. Aside from “Fortnite,” the North Carolina-based company also developed the popular “Gears of War” game series, as well as the Unreal Engine, a game design platform that powers several other well-known titles.
“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,” Epic Games founder and CEO Tim Sweeney said in a statement.
Released in 2017, “Fortnite” helped popularize the “battle royale” gaming segment. Players are dropped into a “sandbox” environment and left to scrounge for gear and battle each other until only one player or team remains.
Epic Games recently announced that “Fortnite” had 78.3 million active players in August.
The $1.25 billion funding round is the largest ever raised by a video game company, according to Business Insider. The investors join Disney and Chinese firm Tencent, which also hold stakes in Epic Games.