Tim Sweeney’s fortune climbs to $ 7.4 billion as Epic Games scores a valuation of $ 28.7 billion
Epic Games’ crusade against Apple and Google didn’t scare investors off, as it raised $ 1 billion this week in a new round of funding that valued the Fortnite maker to $ 28.7 billion. Forbes estimates founder and CEO Tim Sweeney now has a net worth of $ 7.4 billion, up from $ 4.7 billion after his previous funding round just eight months ago.
Epic Games boasted in May 2020 that Fortnite had surpassed 350 million players. It made headlines last August when it was pulled from Apple’s App Store and Google Play Store, due to a direct payment option it implemented to allow gamers to purchase in-game items, in violation of Apple and Google policies which take a 30% discount from all in-app purchases. Sweeney has not caved in, calling the tech giants monopolies, and Epic Games is pursuing legal action with an antitrust lawsuit set to begin in May.
The controversy hasn’t stopped gamers from continuing to download and play Fortnite through the Epic Games Store, although Epic should. lose at least $ 330 million by offering free games and deals as it competes for market share on Steam, a gaming platform run by Valve Corp. billionaire Gabe Newell. Epic’s previous investors are making sure it still has enough cash to offset the investment. Sony invested $ 250 million in last August’s $ 1.78 billion round, which raised Epic’s valuation to $ 17.3 billion, and it injected an additional $ 200 million into the framework. of this week’s announcement.
Epic said in a Press release that the funding “will support his long-term vision of the Metaverse,” a buzzword that describes a collective virtual reality. It has hosted Fortnite virtual concerts featuring artists like Travis Scott and Marshmello over the past two years to strengthen its player community.
Sweeney remains the majority shareholder in the company, says Epic, and Forbes estimates that it now has a 28% stake. The Chinese internet giant, Tencent, is the largest external shareholder, with 40% of the capital. An Epic spokesperson declined to comment further on Sweeney’s ownership.
The boost makes Sweeney, 50, former SAS founder James Goodnight, the richest person in North Carolina. Epic is based in Cary, NC, and Sweeney is an active land advocate in the state, where he has purchased approximately 50,000 acres of forest land to prevent it from expanding.