The relationship between Sony and Epic Games is getting even closer.
Last year, Sony Group Corporation — the parent company of Sony Music Group — spent $200 million to acquire a 0.7% Interest in the game company that makes Fortnite (now owned by BandCamp).
This investment followed a larger stake purchase in 2020 when Sony spent $250 million to acquire around $1,000 in equity in Epic 1.5% his business.
Now for some big news, today (April 11) Epic Games confirmed that Sony has agreed to spend money 1 billion dollars to acquire another stake in his company.
Epic Games says this latest agreement gives it one $31.5 billion Post-investment equity valuation – meaning Sony’s new $1 billion investment bought him an additional piece worth about 3.2% by epic.
Let’s do the math: In its three investments over the past three years ($250 million in 2020; $200 million in 2021; $1 billion in 2022), Sony has $1.45 billion to buy shares in Epic Games spent.
As a result, today Sony owns approximately 5.4% in the interactive entertainment company.
Sony isn’t the only participant in Epic Games’ recent funding round: KIRKBI, the family-owned holding and investment company behind The LEGO Group, has also acquired a ≈3.2% stake with a $1 billion investment of its own.
So, across Sony and KIRKBI, Epic Games has raised $2 billion at that $31.5 billion valuation.
(Don’t forget: Another major shareholder in Epic Games is Tencent, which owns 40% of the North Carolina-based tech company through a $330 million investment made in 2012.)
Epic Games says it will use fresh investment capital from Sony and KIRKBI to “move forward [our] Vision to build the Metaverse and support our continued growth”.
In a media statement, Epic said that it, Sony and KIRKBI all “greatly value both creators and players and aim to create new social entertainment that explores the connection between digital and physical worlds.”
Epic continues to have only a single class of common stock outstanding and continues to be controlled by its CEO and founder, Tim Sweeney.
Kenichiro Yoshida, Chairman, President and CEO of Sony Group Corporation said, “As a creative entertainment company, we are excited to invest in Epic to deepen our relationship in the Metaverse space, 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 diverse efforts such as the development of new digital fan experiences in esports and our virtual production initiatives.”
Søren Thorup Sørensen, CEO of KIRKBI said: “Epic Games is known for creating playful and creative experiences and empowering developers big and small.
“Some of our investments are focused on trends that we believe will impact the future world in which we and our children will live. This investment will accelerate our engagement in the world of digital gaming, and we are excited to invest in Epic Games to support their continued growth trajectory, with a long-term focus on the future Metaverse.”
Tim Sweeney, CEO and Founder of Epic Games said, “As we reinvent the future of entertainment and gaming, we need partners who share our vision. We found that 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 create creative and immersive experiences, and developers can build community and thrive.”
Closing of the investment is subject to customary closing conditions, including regulatory approvals.
Epic Games last week unveiled the latest iteration of its Unreal Engine – a technical “building block” on which video games can be created.
Unreal Engine 5, according to Epic, “introduces a collection of groundbreaking features for rendering real-time worlds in incredible high-fidelity detail.”
Epic confirmed that over 85 game studios are already part of the UE5 community, including The Coalition, CD PROJEKT RED and Crystal Dynamics, who just announced they are developing a new Tomb Raider video game, UE5.music business worldwide
https://www.musicbusinessworldwide.com/sony-spending-1bn-to-buy-another-3-stake-in-epic-games-to-help-build-the-metaverse/ Sony is spending $1 billion to buy another 3% stake in Epic Games to help “build the metaverse.”