Sony and LEGO's parent firm pump US$2bn into Epic Games

Epic Games has announced a US$2 billion round of funding from Sony and KIRKBI, the holding and investment company behind The LEGO Group. The funds will be used to advance the company’s vision to build the metaverse and support its continued growth. Epic's post-money equity valuation is US$31.5 billion. The closing of the investment is subject to customary closing conditions, including regulatory approvals.

Both Sony and KIRKBI will each invest US$1 billion respectively. This news comes shortly after LEGO and Epic partnered to build a metaverse for children and their families. While details on the partnership's tenure have not been released, the family-friendly digital experience seeks to give children access to tools that will empower them to become confident creators and deliver amazing play opportunities in a safe and positive space.

Meanwhile, Epic's CEO and founder, Tim Sweeney, said that the new funding will bolster work towards building the metaverse, and create spaces where players can have fun, brands can build more unique experiences and creators can build a community. “As we reimagine the future of entertainment and play we need partners who share our vision. We have found this in our partnership with Sony and KIRKBI,” added Sweeney.

All three companies highly value both creators and players within the gaming industry, and aim to create new social entertainment avenues by exploring the connection between digital and physical worlds, the press statement said. Epic, the creator behind Fortnite, currently has only a single class of common stock outstanding, which is controlled by Sweeney.

Kenichiro Yoshida, chairman, president and CEO of Sony Group Corporation said: "We are confident that Epic’s expertise, including its game engine, combined with Sony’s technologies, will accelerate our various efforts such as the development of new digital fan experiences in sports and virtual production initiatives.” 

“Epic Games is known for building playful and creative experiences and empowering creators large and small,” said Søren Thorup Sørensen, CEO of KIRKBI. According to him, a proportion of KIRKBI’s investments is focused on trends that the company believes will have a positive impact on today's world. Sørensen added that the investment will accelerate engagement with digital play and continue growth, with a long-term focus on the metaverse. 

This latest round of funding follows the acquisition of rival Activision Blizzard by Microsoft in January for US$68.7 billion to accelerate the latter's gaming business across mobile, PC, console, and cloud. When the transaction closes, Microsoft will become the world’s third-largest gaming company by revenue, behind Tencent and Sony, the company said previously.

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