The Makers of 'Fortnite' Are Now Worth Almost $15 Billion After New Investment Deal
Can we have one day without Fortnite making headlines? Apparently not.
'Fortnite' addiction is real and the game's popularity is as pervasive and all-consuming as ever. First came the news of parents hiring coaches for their kids, then came the information that Fortnite was behind a spate of divorces in the UK. Yep, there's no escaping it.
For those unaware (read: living under a rock), Fortnite is the biggest thing in multiplayer right now; a free and straightforward game of friendly murder that anyone can jump in and play. Things are just getting sweeter for the game - and company. Epic Games, the makers of Fortnite, is now $1.25 billion richer thanks to a recent investment deal. The Wall Street Journal reports that, thanks to the investment, the company's worth is almost a staggering $15 billion.
Fortnite has achieved massive success of late and a collective of seven eSports and traditional sports companies wanted a piece of the pie. Already, Disney, Endeavor and Tencent are heavily invested and to ensure the future growth of Epic Games (whilst also securing their chance to capitalise on the success), KKR, Iconig Capital, Smash Ventures, aXiomatic, Vulcan Capital, Kleiner Perkins and Lightspeed Venture have joined the party.
The game vaulted to the top of the more than $70 billion industry by putting a cartoonish spin on the classic shooter genre. In its "Battle Royale" mode, 100 players compete to be the last team or player standing, rather than simply roaming a battle attempting to kill one another. Epic released the mode free but also makes money by selling virtual costumes and dance moves for the game's characters. The company has raked in more than $700 million in revenue from these so-called micro-transactions over the past year, according to estimates from SuperData.
Tim Sweeney, founder and CEO of Epic Games, created the company in his parents' basement in 1991. He said, "We're excited to partner with the finest minds in the financial sports, and entertainment communities. This reinforces Epic's position of leadership in real-time 3D technology and accelerates our ability to improve the way people play, work, and interact with the world."
Jeffries analyst Tim O'Shea said about the success of Epic, "They'll have built a sustainable business." And whilst Fortnite may have cooled off somewhat from its hey-day earlier in the year, as O'Shea suggests, "No doubt people will be playing this game for years to come."