Sony Buy $250M Stake In Fortnite Creator Epic Games
Sony Corporation has made a strategic investment of $250 million to acquire a minority stake of Epic Games, the creator of the hugely popular video game Fortnite.
According to venturebeat.com, Sony is acquiring a 1.4% stake in Epic Games with this $250 million, which means with the deal Epic Games is valued at some $17.86 billion.
However, the closing of the deal is still subject to customary closing conditions, including regulatory approvals.
The investment would allow Sony and Epic Games to broaden their collaboration across Sony’s portfolio of entertainment assets and technology, and Epic Games’ social entertainment platform and digital ecosystem.
Importantly, the deal would give Sony a significant leg up in its gaming console war with Microsoft’s Xbox Series X, which is set to commence this holiday season (October-December). Sony unveiled its disc-free Playstation 5 console and a host of upcoming games last month.
“Epic’s powerful technology in areas such as graphics places them at the forefront of game engine development with Unreal Engine and other innovations. There’s no better example of this than the revolutionary entertainment experience Fortnite,” said Kenichiro Yoshida, Chairman, President and CEO of Sony Corporation.
“Through our investment, we will explore opportunities for further collaboration with Epic to delight and bring value to consumers and the industry at large, not only in games, but also across the rapidly evolving digital entertainment landscape.”
In a shared statement Sony and Epic Games revealed that they plan on creating real-time 3D social experiences that converge gaming, film, and music.
Last month, Bloomberg reported that Epic Games was close to raising $750 million in a round of funding. Last year the company received $1.25 billion in funding for its game engine Unreal.