Sony Corp. announced today it has invested $250 million in Epic Games, the owner and the creator of the popular video game Fortnite and the mobile app Houseparty. Bloomberg first reported last month that Epic was close to securing funding at a valuation of about $17 billion.
Sony, the maker of the PlayStation, didn’t disclose the price it paid for stock in the privately held gaming startup company. The investment cements an already close relationship between the two companies and reinforces the shared mission to advance the state of the art in technology, entertainment, and socially-connected online services.
Founded in 1991 by Mark Rein and Tim Sweeney, the Cary, North Carolina-based Epic Games is the creator of Fortnite, Unreal, Gears of War, Shadow Complex, and the Infinity Blade series of games. Epic’s Unreal Engine technology brings high-fidelity, interactive experiences to PC, console, mobile, AR, VR and the Web. Epic Games creates games and also offers its game engine technology to other developers.
According to the release, the investment allows Sony and Epic to aim to broaden their collaboration across Sony’s leading portfolio of entertainment assets and technology, and Epic’s social entertainment platform and digital ecosystem to create unique experiences for consumers and creators. The closing of the investment is subject to customary closing conditions, including regulatory approvals.
“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. 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,” said Kenichiro Yoshida, Chairman, President and CEO, Sony Corporation.
“Sony and Epic have both built businesses at the intersection of creativity and technology, and we share a vision of real-time 3D social experiences leading to a convergence of gaming, film, and music. Together we strive to build an even more open and accessible digital ecosystem for all consumers and content creators alike,” said Tim Sweeney, Founder and CEO of Epic.