The Success of Fortnite Turns Epic Games into a Billion-Dollar Company
Fortnite’s immense success has not only made Epic Games a highly valuable company but has also turned its founder into a billionaire.
According to Bloomberg’s Billionaire Index, Epic Games is now worth between $5 and 8 billion. This is due to the projected $2 billion in revenue expected from the battle royale title this year.
Some analysts believe that this valuation might be conservative. Tim O’Shea of Jefferies Financial suggests that the company could be worth as much as $14 billion, based on the value of companies like Electronic Arts and Activision Blizzard.
Michael Pachter of Wedbush Securities also thinks that Epic could command a sale price of $7.5 billion, even if revenue falls 50 percent short of current estimates. Regardless of the exact valuation, founder Tim Sweeney would become a billionaire, although his percentage stake in the company is uncertain.
Back in 2012, Chinese tech conglomerate Tencent purchased 40 percent of Epic at a valuation of $825 million. Even with the most conservative estimates, that initial investment is now worth $2 billion.
Fortnite continues to attract new players even a year after its release. With regular updates and new content, Epic Games’ hit title is generating record levels of revenue across various platforms. And this growth shows no signs of stopping.
Despite being free-to-play, the game has already generated approximately $1 billion in revenue in 2018 as of July, according to SuperData Research.
One key factor contributing to Fortnite’s ongoing popularity is its availability on multiple gaming platforms, including PC, Xbox One, Playstation 4, Switch, and mobile. It can be played almost anywhere.
The mobile version of the game has been particularly successful, earning $100 million within just three months of its release. According to market intelligence group Sensor Tower, the mobile version of Fortnite has generated around $2 million in daily revenue throughout its fifth ladder season.