[Funding alert] Fortnite maker Epic Games raises $2B from Sony and Lego

Epic Games, the firm behind popular video game Fortnite, announced today that it has secured $2 billion in the funding round. With this latest round of funding, the firm intends to venture into metaverse.

The funding was led by Sony Group Corporation and KIRKBI, the company behind The LEGO Group. Both companies have invested $1 billion each at a post-money valuation of $31.5 billion. The investment is subject to standard closing conditions, which include regulatory clearances.

Tim Sweeney, CEO and Founder of Epic Games 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,” he added.

The firm's free-to-play cross-platform video game, Fortnite has several registered users and has its own closed ecosystem. The main benefit of this NFT-supported game is that its features, such as character and weapon "skins," cannot be resold or transferred to other games.

Soren Thorup Sorensen, CEO of KIRKBI said, “A proportion of our investments is focused on trends we believe will impact the future world that we and our children will live in. This investment will accelerate our engagement in the world of digital play, and we are pleased to be investing in Epic Games to support their continued growth journey, with a long-term focus toward the future metaverse.”

Earlier this month, The LEGO Group and Epic Games partnered to create a kid-friendly, LEGO-themed metaverse. Previously in 2020, the firm acquired SuperAwesome, a company that is designed to deliver digital engagement with children under 16. Besides that, the firm also acquired Bandcamp, a music and artist community platform.

Furthermore, the company announced a sample project: the Lyra Starter Game and launched Unreal Engine 5 on April 5. This feature enables users to create next-generation real-time 3D content and experiences, which is extensively used in the video gaming industry, as well as other industries including film, television, and architecture.