Following the funding round, the American video game company has taken its valuation to $31.5bn
Sony and KIRKBI invest $1bn each in video game developer Epic Games. (Credit: Epic Games, Inc.)
Epic Games, a US-based video game developer, has raised $2bn from existing investor Sony Group and KIRKBI in a new funding round to advance its vision to develop the metaverse.
Following the funding round, the video game company has taken its valuation to $31.5bn.
KIRKBI is a family-owned holding and investment company behind The LEGO Group, a Danish toy production company.
Both Sony Group and KIRKBI are investing $1bn each in Epic Games.
Sony Group chairman, president, and CEO Kenichiro Yoshida said: “As a creative entertainment company, we are thrilled to invest in Epic to deepen our relationship in the metaverse field, a space where creators and users share their time.
“We are also confident that Epic’s expertise, including their powerful game engine, combined with Sony’s technologies, will accelerate our various efforts such as the development of new digital fan experiences in sports and our virtual production initiatives.”
Epic Games, Sony Group, and KIRKBI aim to build new social entertainment by studying the link between digital and physical worlds.
As per the terms of the investment deal, Epic Games will continue having only a single class of common stock outstanding. The company will remain controlled by Tim Sweeney, its CEO and founder.
Sweeney said: “As we reimagine the future of entertainment and play we need partners who share our vision. We have found this in our partnership with Sony and KIRKBI.
“This investment will accelerate our work to build the metaverse and create spaces where players can have fun with friends, brands can build creative and immersive experiences and creators can build a community and thrive.”
The closing of the investment is conditional on receipt of regulatory approvals and customary closing conditions.
KIRKBI’s investment in Epic Games follows a recently announced partnership between the latter and the LEGO Group to develop a place for kids to play in the metaverse. In this connection, Epic Games and LEGO Group will jointly build a digital experience that is immersive, creatively inspiring and engaging for kids of all ages.