Epic Games, a prominent company in the video game development industry, has always been a subject of great interest to investors. The topic of its IPO is frequently raised, particularly as the company has yet to list its shares on the stock market. So, when will Epic Games go public with an IPO?
1. Overview of Epic Games
Founded by Tim Sweeney in 1991, Epic Games is one of the leading software and video game development companies. Initially named Potomac Computer Systems, the company later changed its name to Epic MegaGames before eventually becoming Epic Games.
Epic Games is best known for two flagship products: the game Fortnite and the 3D development tool Unreal Engine. Their first major success came in 1998 with the first-person shooter game Unreal, after which the company began licensing the Unreal Engine technology. In addition to Fortnite, Epic Games has released other famous titles such as Unreal Tournament and Gears of War. The company also operates the Epic Games Store, an online digital game distribution platform.
Since 2019, Epic Games has expanded its scope by acquiring several subsidiaries in areas such as game development, animation, 3D modeling, and motion capture. Some notable names in this list include Psyonix (developer of Rocket League), ArtStation, Harmonix, Sketchfab, and Mediatonic.
2. Will Epic Games have an IPO?
Currently, Epic Games remains a private company, and no shares are publicly traded on the stock market. However, the company has not officially announced any plans for an IPO in the near future. Some unofficial reports and rumors suggest that Epic Games may be preparing for a public offering, but nothing is certain until the company makes a public announcement.
Given its current size and success, it seems unlikely that Epic Games will go public in the immediate future, though the possibility remains for a future IPO.
3. Who owns Epic Games?
Tim Sweeney, the founder of Epic Games, currently holds the largest share with 41.4%. Following him is the Chinese conglomerate Tencent, which owns 35% of the company. Other major shareholders include The Walt Disney Company (9%), Sony (5.4%), and Kirkbi A/S (3.2%). This ownership structure ensures that Epic Games has the backing of prominent players in both the entertainment and technology industries.
4. How to buy Epic Games stock
Currently, retail investors cannot purchase Epic Games stock directly. However, there are platforms such as Equity Zen and Lindqo that allow access to shares of private companies, including Epic Games. It is important to note that the availability of shares on these platforms is not stable and is typically reserved for accredited investors.
Another option is to invest in Tencent shares, the company that owns 35% of Epic Games. However, Tencent has many other investment sectors, so access to Epic Games through Tencent may be limited. Additionally, you might consider investing in the ARK Venture Fund, a venture capital fund managed by ARK Invest. This fund announced its investment in Epic Games in October 2022.
Retail investors can participate in the ARK Venture Fund through platforms like SoFi and Titan. However, investing in venture capital funds carries high risks, as it is a speculative form of investment.
5. Alternatives to Epic Games
Although Epic Games is not a publicly traded company, there are many large video game development companies that are listed on the stock market in the United States. Here are some alternatives you may consider:
- Electronic Arts (EA): A well-known video game developer famous for titles such as FIFA, Madden NFL, and The Sims.
- Take-Two Interactive Software (TTWO): The developer and publisher of major games like Grand Theft Auto and NBA 2K.
- Roblox Corporation (RBLX): An online gaming platform focused on user-generated content and game creation from the community.
- Unity Software (U): Provides game and application development tools, notably for creating 2D and 3D games.
6. What is the Epic Games stock ticker?
Since Epic Games is a private company, it does not have a stock ticker or trading symbol on public stock exchanges. Its shares are not publicly listed.
7. What is the price of Epic Games stock?
As Epic Games does not trade publicly, the price of its stock is not available. However, as of April 2022, the company was valued at $31.5 billion. This valuation decreased after Disney acquired a 9% stake in Epic Games for $1.5 billion, reducing the company’s valuation to approximately $22.5 billion, significantly lower than previous years.
Although Epic Games does not have a clear IPO plan at the moment, given its size and growth potential, a public offering in the future is still a possibility. Investors should continue to monitor the company’s developments for a clearer picture.
