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Tencent has Changed the Fortunes of Epic Games

Epic Games has made use of the massive success for their highly popular video game “Fortnite” as a perfect platform to raise more funds. On Friday, a company based in Maryland, The Potomac, announced that they have raised an amount of $1.25 billion as part of their round of major new investment. There are other companies as well, who have taken part in the fundraiser. They include Kleiner Perkins, Lightspeed Venture Partners, Vulcan Capital, Iconiq Capital and axiomatic, all took part in the fundraiser. Hence, they bought stakes in an organization, which is already backed up by the likes of Tencent Holding Ltd and Walt Disney Co.

Epic Games, in a very shrewd manner looked out for new investors to cash upon their reputation, which is at an all-time high. The success of Fortnite along with their popular online battle royale mode has managed to push the company forward right to the top of more than $100 billion video game industry. Thus, it has forced the heavyweights of this sector like, Activision Blizzard along with Electronic Arts to have a rethink over their strategies. People, who have knowledge over the matter, told The Wall Street Journal that the latest fundraiser from Epic has valued the firm at almost $15 billion. This is close to three times its worth, before the release of Fortnite. Now, this transformation shows that the decision to invest in the firm back in the year 2012, was indeed a very smart move. During Fortnite’s early stages of development, Tencent bought a stake of 40 percent in Epic at a valuation of around $825 million.

The co-founder of Epic, Tim Sweeney said that Tencent’s funds helped the organization in making this massive leap without having any kind of immediate fear of funds. Tencent carried with it an extensive amount of expertise. It is the world’s biggest gaming company, having investments in a number of developers. The latest backer of Epic will hope that their money will be put to good use. Fortnite still continues to be extremely popular with gamers, though it is quite evident that sales will hit a downward trend as time passes by.

Gary Kalmenson

+1 802-863-8211 gary@thebusinesshours.com

Gary is working with us as a Senior Editor for three years. He is devoted to writing news bulletins from Business field like global automobile market, share market, the crude oil market and much more. In free time, he likes to visit new food places. Additionally, he is a popular guest lecturer and is invited by colleges to guide their students in the business field. Gary also likes to arrange charity programs for educating orphan students as a social worker.

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