Sony has agreed to make a strategic investment of $250 million in Epic via a wholly-owned subsidiary of Sony.
According to Sony: “The investment cements an already close relationship between the two companies and reinforces the shared mission to advance the state of the art in technology, entertainment, and socially-connected online services.”
Earlier this year, Travis Scott, signed to Sony’s Epic Records, reached nearly 28 million fans via a virtual concert performance in Fortnite.
By acquiring a stake in Epic Games, Sony joins Tencent, which owns 40% of the North Carolina-based interactive entertainment company via a $330m investment made in 2012.
“Through our investment, we will explore opportunities for further collaboration with Epic to delight and bring value to consumers and the industry at large, not only in games, but also across the rapidly evolving digital entertainment landscape.”
Kenichiro Yoshida, Sony Corp
Recent valuations of Epic put the company’s current worth at approximately $17bn, suggesting that Sony may have acquired somewhere in the region of 1.5% of the firm.
Sony added in press release today (July 9): “The investment allows Sony and Epic to aim to broaden their collaboration across Sony’s leading portfolio of entertainment assets and technology, and Epic’s social entertainment platform and digital ecosystem to create unique experiences for consumers and creators.”
The closing of the investment is subject to customary closing conditions, including regulatory approvals.
Kenichiro Yoshida, Chairman, President and CEO, Sony Corporation, said: “Epic’s powerful technology in areas such as graphics places them at the forefront of game engine development with Unreal Engine and other innovations. There’s no better example of this than the revolutionary entertainment experience, Fortnite.
“Through our investment, we will explore opportunities for further collaboration with Epic to delight and bring value to consumers and the industry at large, not only in games, but also across the rapidly evolving digital entertainment landscape.”
“We share a vision of real-time 3D social experiences leading to a convergence of gaming, film, and music.”
Tim Sweeney, Epic Games
What could Yoshida be referring to?
It’s worth remembering that, in May, MBW revealed that Sony Music was hiring for an in-house team to “dedicated to reimagining music through immersive media”, with a specialism in working with Epic’s Unreal Engine.
We subsequently discovered that Sony Music had hired respected interactive entertainment veteran, Adam Orth.
Discussing the new Sony investment, Tim Sweeney, Founder and CEO of Epic, said today: “Sony and Epic have both built businesses at the intersection of creativity and technology, and we share a vision of real-time 3D social experiences leading to a convergence of gaming, film, and music.
“Together we strive to build an even more open and accessible digital ecosystem for all consumers and content creators alike.”
Fortnite is the world’s largest video game with over 350 million user accounts.
Epic’s Unreal Engine powers a host of blockbuster video games as well as being used in industries such as film and television, architecture, automotive, and manufacturing for visualization and simulation.Music Business Worldwide
