Epic Games stock and Epic Games IPO
The Power of Epic Games
Epic Games is the company behind the blockbuster video game Fortnite. It's among the world's most popular games, with over 350 million active accounts. The company's epic hit game isn't the only thing going for the game maker. Epic also developed the Unreal Engine, which drives many of the world's leading games. Several other industries utilize the technology, including films and television, architecture, automotive, manufacturing, and simulation. The Unreal Engine drives the company's Epic Games Store and Epic Online services. This integrated platform enables developers and creators to build, distribute, and operate games and other digital content.
A Look at Epic's Products
Epic Games was founded in 1991 and has steadily released and published games for consoles and PCs ever since. It has been known primarily for Unreal, Gears of War, and Fortnite franchises. All these products have remained profitable for Epic Games since their release. At the time of writing, the Unreal franchise has largely petered out in terms of title releases. Epic hasn't released any new Unreal games since 2014 and recently shut down servers for an Unreal game tournament.
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Epic games is launching new games all the time, keeping its portfolio up-to-date with customers’ taste.
Profitability Analysis
Is Epic Games profitable? Because Epic Games is a private company, there is little publicly available information about its finances. However, according to documents released by Apple relating to a legal battle to get Fortnite on the App Store, Epic Games isn't yet profitable. The company reportedly lost between $100 million and $200 million annually from 2019 through 2021. It's common for growing technology companies to lose money. They're typically investing heavily in new products. In Epic's case, it's investing in expanding its Epic Games Store and developing new games.
Epic Games' Revenue Breakdown
Revenue is a business’s gross income or money from regular operations before costs are considered.
Epic Games generated more than $6 billion in revenue in 2022. That included sales within Fortnite and revenue from its Unreal gaming engine. Epic Games reported that PC players spent $820 million on the Epic Games Store in 2022. That's a lot of money. It generates more revenue than some rival publicly-traded gaming companies. For example, Take-Two Interactive generated $3.5 billion in net revenue in fiscal year 2022; Roblox's revenue was $2.2 billion in 2022. EA had higher sales at $7.5 billion in net bookings in fiscal 2022.
Epic Games introduced Creator Economy 2.0 in March 2022. This innovative development starts with the early access launch of engagement payouts, offering a new avenue for eligible island creators to earn money. These earnings are based on users' interaction and engagement with the content published on their respective islands, opening a fresh and exciting revenue stream for creators within the Fortnite ecosystem.
Fortnite is a popular online multiplayer video game developed by Epic Games, known for its battle royale mode where players compete to be the last person standing.
Epic Games IPO Status
As of mid-2023, Epic Games had not completed an initial public offering (IPO). Epic Games is a privately held company owned by Tim Sweeney, Tencent, Sony, Kirkbi and IPO CLUB. When will Epic Games IPO? Epic Games didn't have an IPO on the calendar as of mid-2023. There has been speculation since 2021 that the company would complete an IPO, but market conditions may delay it.
How much is Epic Games worth?
Epic Games raised $2 billion in additional funding in early 2022 when Sony and Kirkbi each invested $1 billion into the company to fund building a metaverse for kids. That latest funding round gave the company a valuation of $31.5 billion, rivaling other publicly traded game makers. That valuation has halved since the stock has sold off with the market, losing at least 50% of its 2022 value.
How to invest in Epic Games?
Investors looking to invest in Epic Games can do so through IPO CLUB, a pre-IPO platform that has strategically invested in the company and owns shares. Before Epic Games went public with an Initial Public Offering (IPO), IPO CLUB provided an opportunity for accredited, qualified, and institutional investors to purchase a stake in the gaming giant. This unique avenue allows investors to potentially benefit from Epic Games' growth and success even before it's listed on the stock market.
Alternatively, investors could invest in one of the two publicly traded companies with shares: Tencent or Sony. Both companies have diversified portfolios, and Tencent has the most exposure to Epic Games, holding 40% of the company's shares.
Another option to consider is investing in a different video game stock. Alternatives include Take-Two Interactive, Electronic Arts, and Roblox.
Who owns Epic Games
Epic Games, founded in 1991 by Tim Sweeney, is a leading video game and software developer headquartered in Cary, North Carolina. Known for its Unreal Engine technology, Epic has revolutionized game development with powerful tools for creators. The company is also recognized for popular titles like Fortnite, which have significantly influenced the gaming industry and culture. Epic Games continues to innovate, expanding its ecosystem through the Epic Games Store and fostering a strong community of developers and players worldwide.
What is IPO CLUB
We are a club of Investors with a barbell strategy: very early and late-stage investments. We leverage our experience to select investments in the world’s most promising companies.
Disclaimer
This content is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
