Cary-based Epic Games valued $17.3 billion after mega funding round

CARY — Epic Games, creators of the mega hit “Fortnite,” is now worth a whopping $17.3 billion.

The latest valuation comes after the Cary-based game developer announced today that it had closed a $1.78 billion round of funding consisting of primary capital and secondary purchases from employee equity holders.

This round includes a previously announced $250 million strategic investment from Sony Corporation. Additional investment partners include Baillie Gifford, funds and accounts managed by BlackRock, Fidelity Management & Research Company LLC, Lightspeed Venture Partners, Ontario Teachers’ Pension Plan Board, funds and accounts advised by T. Rowe Price Associates, Inc., and David Tepper.

Existing investors KKR and Smash Ventures also added to their 2018 investment.

The company said Epic will continue to have only a single class of common stock outstanding and will remain controlled by its founder and CEO, Tim Sweeney.

“Having the support of leaders in the financial community accelerates Epic’s efforts to build a new kind of digital ecosystem using real-time 3D technology, services that connect hundreds of millions of people, and a digital storefront that offers a fair business model,” Sweeny said in a statement. “We are delighted to have them as part of the Epic family.”

Tim Sweeney (Photo courtesy of Epic Games via Forbes)

Epic’s good fortunes coincide with a global economic downturn. As the world reels from the coronavirus pandemic, the company has seen a surge in users during the quarantine.

Its flagship game “Fortnite” has surpassed 350 million registered users. In April alone, it logged more than 3.2 billion total hours played in-game, and hosted the wild popular Travis Scott concert attended by more than 12.3 million fans.

Forbes magazine estimates that Epic Games is now worth more than twice as much as all of Major League Soccer, which is valued at $7.5 billion.

Founded in 1991, Epic has over 2,200 employees across 35 offices worldwide with headquarters in Cary, North Carolina.

Last October, it announced plans to expand its HQ to accommodate up to 2,000 employees. The plans include adding a 450,000- to 500,000-square-foot facility on its campus at the corner of Crossroads Boulevard and Jones Franklin Road, a property that Epic has owned since 2015.