Epic Games valued at about US$32b in funding from Sony, Lego firm

[BENGALURU] Epic Games said on Monday (Apr 11) it had raised US$2 billion from Sony Group Corp and the family-owned holding company behind the Lego Group, valuing the "Fortnite" creator at US$31.5 billion.

Sony, an existing investor, and the Kirkbi investment company each invested US$1 billion, Epic said, with the fundraising to help advance a metaverse partnership the company had entered into with the Lego Group earlier this month.

Metaverse is the latest buzzword in the technology space, and broadly refers to the idea of a shared virtual platform that people can access through different devices and where they can move through digital environments.

Deals are picking up pace in the segment as tech giants see it to be a major innovation and revenue generator.

Microsoft in January agreed to buy "Call of Duty" maker Activision Blizzard for US$68.7 billion, marking the biggest acquisition in the gaming sector and boosting the industry's bet on the metaverse.

"Fortnite" is already considered to be part of the metaverse, and the investment in Epic will give Sony a chance to delve deeper and capitalise on that business.

Epic Games has largely lost a trial last year over whether Apple's payment rules for apps were anticompetitive. That decision found Apple had suitable reasons to force some app makers such as Epic to use its payment system and take commissions of 15 per cent to 30 per cent on their sales.

REUTERS