Epic Games, the studio behind the mega-hit Fortnite, is raising $750 million at a valuation of $17 billion, according to Bloomberg.
T. Rowe Price Group Inc and Baillie Gifford will reportedly contribute to the round, and existing investors including KKR & Co Inc will also participate. Epic Games' majority shareholder is founder and CEO Tim Sweeney, and the second-largest stake is held by the Chinese Internet giant Tencent.
Epic Games is also known for titles such as Infinity Blade and Gears of War, but Fortnite is its biggest commercial success. Fortnite generated $1.8 billion in revenue in 2019, according to Nielsen, and has more than 200 million players globally.
In a recent earnings call, Nvidia CEO Jensen Huang called out popular gaming titles, including Fortnite, as one factor in the chipmaker's blowout first quarter financial performance.
"The top three games in the world today are Fortnite, Minecraft and Animal Crossing...all three are on Nvidia platforms," Huang said. "We have all the dynamics working in our favor and we’ll have to see how it turns out."
In addition to creating games, Epic Games also builds and sells gaming development software and maintains a publishing label, among other initiatives. The company parlayed the success of Fortnite into an expansion of its portfolio, acquiring smaller software firms and game development shops.
Epic Games has raised $1.6 billion in financing since it was founded in 1991, and was last valued at $15 billion in December 2018.
Nvidia is a holding in Jim Cramer's Action Alerts PLUS member club.