Epic Games Raises $2 Billion From Sony, Lego Parent Company to Build Out Metaverse

Epic Games raised $2 billion (roughly Rs. 15,200 crore) from Sony and the family-owned holding company behind the Lego Group on Monday, valuing the Fortnite creator at $31.5 billion (roughly Rs. 2,39,415 crore).

Sony, an existing investor, and the Kirkbi investment company each invested $1 billion (roughly Rs. 7,600 crore), Epic said, with the fundraising to help advance a metaverse partnership the company had entered into with the Lego Group earlier this month to build a metaverse for kids.

Metaverse is the latest buzzword in the technology space, and broadly refers to the idea of a shared virtual platform that people can access through different devices and where they can move through digital environments.

Deals are picking up pace in the segment as tech giants see it to be a major innovation and revenue generator.

Microsoft in January agreed to buy Call of Duty maker Activision Blizzard for $68.7 billion (roughly Rs. 5,22,120 crore), marking the biggest acquisition in the gaming sector.

Fortnite is already considered to be part of the metaverse, and the investment in Epic will give Sony a chance to delve deeper and capitalise on that business.

Epic Games has largely lost a trial last year over whether Apple's payment rules for apps were anti-competitive. That decision found Apple had suitable reasons to force some app makers such as Epic to use its payment system and take commissions of 15 to 30 percent on their sales.

© Thomson Reuters 2022