Epic Games, the maker of popular video games Fortnite and Houseparty, is in talks to raise as much as $1.7 billion in funding in a deal that would double its fundraising haul over the last year.
The terms of the funding round value the company at about $28 billion, sources told Bloomberg Wednesday.
Earlier in the day, Sky News reported that Epic had already secured commitments of more than $1 billion. Most of the capital will come from mutual funds and other big institutional investors.
Many of those institutional investors are also existing backers, according to the report.
Epic Games raised $1.78 billion at a valuation of $17.3 billion last August. Investor interest has been driven by the popularity of the company's flagship video game, Fortnite.
Among the company's backers in its latest round are funds managed by Fidelity Investments, Franklin Templeton and T. Rowe PriceGroup, Bloomberg reported.
The company has used some of that capital to acquire the makers of games such as party game Fall Guys, that have grown in popularity during the coronavirus pandemic.
Apple eventually lowered the fees it charges small developers to 15% from 30% due to pressure from Epic.