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Epic Games IPO: Revenue, Valuation, Games, Competitors & How to Invest

George Sweeney, DipFA| Updated February 2nd, 2024
Epic Games IPO: Revenue, Valuation, Games, Competitors & How to Invest 1

No longer are video games seen as a fringe form of entertainment. It’s one of the fastest-growing media industries globally. Technology developments over the years have increased what games can offer and has even led to new sub-sectors within the gaming industry like eSports. One of the companies at the forefront of video game growth in recent years is Epic Games, creator of titles like Fortnite and Gears of War.

Throughout this article, we’re going to take a look at the most important details relating to this gaming stock so that you can decide whether you’d like to invest in Epic Games. We’ll dive into all the key areas, such as the company statistics, current valuation, key competitors, and everything you need to know about the Epic Games IPO (initial public offering).

What is Epic Games?

Epic Games is a video game software developer and publisher. The company started in 1991, originally called ‘Potomac Computer Systems’. Founder and current CEO Tim Sweeney decided to move the company from his parent’s house in Potomac to Cary, North Carolina, in 1999 and change the name to Epic Games.

The two major successes of Epic Games thus far include:

  1. Creation of the ‘Unreal Engine’, technology that powers leading games and is used in industries outside gaming (like TV, film, architecture, manufacturing, and simulators).
  2. Developing and operating one of the world’s largest games, Fortnite.

Epic Games doesn’t have a massive back catalogue of games as it concentrates on quality over quantity. Also, because it creates the underlying game engine technology used elsewhere, there’s not as much financial pressure to pump out games.

After moving from PC games, Epic Games’ focus switched to console games for several years. Then, it changed its approach when it believed gaming interest was shifting towards games-as-a-service model (GaaS). This move led to a partnership with Tencent, who acquired 40% of Epic Games for roughly $330 million in 2012.

Most recently, Epic Games received a $1 billion investment each from Sony and Kirkbi (Lego owners) to fuel growth and metaverse developments. 

Fortnite and app store bans

The change to focus on GaaS learning the ropes from Tencent proved to be a solid move, and Epic Games went on to create Fortnite. Released in 2017/18, it became a runaway success (in terms of finances and popularity). The model was different, using a free-to-play system with in-game purchases. The success of Fortnite attracted lots more investing interest and provided Epic Games the ability to set up its digital store. 

However, a big blow to Epic Games was the ban of Fortnite from the App Store and Google Play Store by Apple and Alphabet respectively. Epic Games argued Apple’s App Store was operating as a monopoly, taking a 30% commission of in-app purchases with no alternative option. Epic Games tried to circumvent this and as a result, got the boot from the store.

Epic Games Key Company Facts

Founded 1963
Headquarters Cary, North Carolina (US)
Sector Media and Entertainment
Industry Video Games
Founder Tim Sweeney
Number of employees 8.700 (LinkedIn January 2024)
IPO Date 2024 (expected)
Total Funding $6.4 billion USD
Valuation estimate $31.5 billion USD

Epic Games Company Statistics

Below is a breakdown of some key information, including Epic Games’s revenue, gross income, Fortnite stats, games lineup, and top competitors.

Epic Games gross worldwide revenue

Year Gross revenue (USD)
2018 $5.6 billion
2019 $4.2 billion
2020 $5.1 billion
2021* $5.8 billion
2022* $6.3 billion
2023* $6.5 billion

Source: Statista (*estimates based on modelling by Statista)

Epic Games gross worldwide income

Year Gross income (USD)
2018 $3.7 billion
2019 $1.8 billion
2020* $1.7 billion
2021* $1.2 billion
2022* $711 million
2023* $344 million

Source: Statista (*estimates based on modelling by Statista)

Epic Games registered worldwide Fortnite users

Date Global Fortnite users
2017 (August) 1 million
2017 (December) 30 million
2018 (January) 45 million
2018 (June) 125 million
2018 (November) 200 million
2019 (March) 250 million
2020 (March) 350 million
2021 390 million

Source: Statista, Active Player

Epic Games Fortnite revenue

Year Fortnite revenue (USD)
2018 $5.4 billion
2019 $3.7 billion
2020 $5.1 billion
2021 $5.8 billion

Source: Epic Games, Business of Apps

Epic Games lineup

Here’s what the past and present lineup of games on offer from Epic Games looks like:

  • Fortnite
  • Alan Wake
  • Rumbleverse
  • Rocket League
  • Battle Breakers
  • Infinity Blade
  • Gears of War
  • Unreal Tournament

Epic Games’ competitors

Below are some examples of gaming competitors to Epic Games:

  • Activision Blizzard
  • EA (Electronic Arts)
  • Riot Games
  • Ubisoft
  • Capcom
  • Rockstar Games
  • Zynga

When is the Epic Games IPO Date?

There’s no exact date set right now. Many investors have been hoping for news about a possible Epic Games IPO (initial public offering), but we don’t have a confirmed plan from CEO Tim Sweeney (or any other company representatives). 

So far, Epic Games has had no problem fundraising and attractive investment interest from organisations with deep pockets. It does not need immediate capital to allow further growth, which is why it may be holding off on a stock market flotation.

How to invest and buy shares after the Epic Games IPO

After the Epic Games IPO date, you can freely buy the newly listed stock. Interactive Brokers and eToro are two top-rated brokers where you can access Epic Games shares and buy the stock with low fees after the IPO. Take a look at both these brokerage options below:

1# Interactive Brokers

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Visit Interactive BrokersEpic Games IPO: Revenue, Valuation, Games, Competitors & How to Invest 2

Interactive Brokers at a glance

Minimum deposit€/$/£0
Products availableStocks, ETFs, Options, Futures, Forex, Commodities, Bonds and Funds
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Countries Supported218 countries globally

Founded in 1978, the IBKR platform lets you access over 150 market destinations in 33 countries and trade any asset you may be looking for: Stocks, Bonds, ETFs, Forex, Funds, Commodities, Options, Futures, CFDs, Cryptos Futures, and even tiny small companies (a.k.a micro caps).

If you want to buy Epic Games stock after the IPO, here’s how you can buy shares using Interactive Brokers:

  1. Open a trading account with Interactive Brokers.
  2. Deposit funds into your account.
  3. Once it’s available, search for the Epic Games stock, there is no confirmed ticker symbol right now.
  4. Place the type of order you wish to use (e.g. market, limit, stop etc.).
  5. Once you’ve bought your desired number of Epic Games shares, continue to monitor performance.

If you’d like to learn more about the IBKR platform, check out our full-length Interactive Brokers review.

2# eToro

Epic Games IPO: Revenue, Valuation, Games, Competitors & How to Invest 3
Visit eToroEpic Games IPO: Revenue, Valuation, Games, Competitors & How to Invest 2

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eToro at a glance

Minimum deposit$10 (varies between countries)
Products availableETFs, Stocks and CFDs on Commodities, Forex, and Cryptocurrencies
RegulatorsFCA, CySEC, ASIC
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Founded in 2006 in Israel, eToro now has over 30 million customers worldwide. The platform is widely known for its social and copy trading features. It allows users to trade stocks, forex, commodities, cryptocurrencies, CFDs, and ETFs.

If you’re planning to buy Epic Games stock after the IPO, here’s how you can buy shares using eToro:

  1. Open an account with eToro.
  2. Head to the ‘Markets’ page, and select ‘Stocks’.
  3. Search for the Epic Games stock and select ‘Trade’.
  4. Next, hit ‘BUY’.
  5. Choose how much you want to invest in Epic Games or the number of shares you want to buy.
  6. Select your leverage (or ensure that leverage is set to X1).
  7. Decide on a take-profit parameter if you want to automate a future sale of your Epic Games stock.
  8. Finally, hit ‘Open Trade’.

If you’d like to learn more about eToro, check out our in-depth eToro review.

Bottom line on investing in the Epic Games IPO

Investing in Epic Games will be an exciting prospect for investors and video game enthusiasts around the world. Right now, you can’t invest directly in Epic Games, but there can be indirect ways, like using certain eSports ETFs (exchange-traded funds). 

Epic Games has attracted lots of money through institutional investments, and the company already has partnerships and ties to giant firms like Tencent, Sony, Disney, and Netflix. The only concern with Epic Games is that financial performance is heavily linked to the success of Fortnite.

Yet, throughout Epic Games’ history, the company has largely concentrated on one product or franchise at a time. The video game firm has also proved it knows when to move on or adjust its approach. So, if money from Fortnite was to dry up, I’m sure Epic Games would have other projects in the works, ready to take over.

Let us know in the comments below if you plan on investing in the Epic Games IPO!

FAQs

What is an IPO?

The acronym stands for ‘Initial Public Offering’, it’s a process used by large private companies to raise additional capital. This is done to further invest in the growth of the business or even pay off debt. An IPO creates public awareness, putting the company under the spotlight. Timing of an IPO is crucial for a company if it wants to maximise its capital-raising potential and increase its valuation due to demand from investors and the market.

Is Epic Games owned by Tencent?

Partly. It’s estimated that Tencent owns 40% of Epic Games.

Who owns Epic Games?

Tencent owns 40%, founder and CEO Tim Sweeney owns roughly 28%, Sony owns 4.9%, Kirkbi owns 3%, and the rest of the 24.1% is not fully known. 

Is Epic Games public or private?

Right now, it’s private.

Where is Epic Games located?

The company has headquarters in Cary, North Carolina (US).

Is Epic Games going to IPO?

Hopefully, but it has not officially confirmed any plans to list the company.

Is Epic Games publicly traded?

Not right now. Epic Games is still a private company. But after the Epic Games IPO, it will become a listed company, and shares will be publicly traded on a stock exchange.

What is the stock ticker for Epic Games?

There’s no confirmed stock ticker for Epic Games right now.

Can you invest in Epic Games now?

Not at the moment. After the company is listed on a stock exchange after its IPO, you will be able to buy Epic Games stock.

What is the IPO price for Epic Games?

This won’t be known until very close to the initial public offering, when the underwriters and investment banks agree on a price.

George Sweeney, DipFA
Contributor

George is a freelance writer and qualified financial advisor who focuses on educating others in personal finance and investing. His work has been featured on The Motley Fool, Finder, Freetrade, Yahoo Finance, MoneyMagpie, and Online Mortgage Advisor.‍

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