This Epic Games company profile covers the company's valuation, revenue, funding rounds, investors and history. Epic Games works in gaming, with a focus on games, game engine and digital store. It was founded in 1991 and is headquartered in Cary, North Carolina, United States. Its latest valuation on record is About US$22.5 billion (reported) (February 2024). Every figure links to a public source, and anything the company hasn't disclosed is marked as such.
Revenue
| Metric | Value | As of | Source |
|---|---|---|---|
| Disney investment | US$1.5 billion for an equity stake, with a multiyear collaboration on a Disney universe connected to Fortnite | February 2024 | CNBC |
Funding history
| Date | Round | Amount | Valuation | Investors | Source |
|---|---|---|---|---|---|
| Feb 2024 | Strategic investment | US$1.5B | Not disclosed by Disney | The Walt Disney Company | CNBC |
| Apr 2022 | Strategic round | US$2B | US$31.5B | Sony Group and KIRKBI (US$1B each) | Business Today |
Epic Games timeline
Key dates from the sources on this page, oldest first. Metric snapshots are listed after the funding events.
- 1991 — Epic Games is founded in Cary by Tim Sweeney (CEO).
- Apr 2022 — Strategic round: US$2B, valuing the company at US$31.5B. Investors: Sony Group and KIRKBI (US$1B each).
- Feb 2024 — Strategic investment: US$1.5B, valuing the company at Not disclosed by Disney. Investors: The Walt Disney Company.
- February 2024 — Disney investment: US$1.5 billion for an equity stake, with a multiyear collaboration on a Disney universe connected to Fortnite.
Investors
Overview
Epic Games is the company behind Fortnite, one of the most popular video games in the world, and Unreal Engine, the software used to build many of today's games, films, TV productions and simulations. It also runs the Epic Games Store, a PC game marketplace, and owns other studios, including Psyonix, the developer of Rocket League. Epic is one of the largest privately held entertainment technology companies in the world.
Tim Sweeney founded the company in 1991 as Potomac Computer Systems, in his parents' home in Maryland, and renamed it Epic MegaGames, later Epic Games. It is headquartered in Cary, North Carolina. Sweeney remains CEO and controls the company: Epic has a single class of common stock, and Sweeney holds a controlling position.
How Epic makes money
- Fortnite: free to play, it earns money from in-game purchases such as character outfits, emotes and the Battle Pass. Fortnite also hosts creator-made experiences and branded events with music artists, films and brands.
- Unreal Engine: free for most developers until their game earns more than a set amount, after which Epic takes a royalty of 5% of revenue. Film, TV, architecture and automotive companies pay through licences or subscriptions.
- Epic Games Store: takes a 12% share of game sales, lower than the 30% traditionally charged by other stores, and offers free games to attract users.
Fortnite generates most of Epic's revenue. Epic doesn't publish audited financial statements; estimates of its revenue come from third parties and from figures revealed in legal cases, so we show revenue as not disclosed.
Investors and valuation
Chinese technology group Tencent bought a large minority stake, reported at around 40%, in 2012. In April 2022, Sony and KIRKBI, the holding company of the family that owns LEGO, each invested US$1 billion, valuing Epic at US$31.5 billion post-money. In February 2024, Disney announced it would invest US$1.5 billion for an equity stake as part of a multiyear partnership to create a Disney entertainment universe connected to Fortnite. Disney didn't disclose the valuation; several reports suggested it was well below the 2022 level, and secondary-market indications in 2026 were lower still. We use the last officially announced valuation and note that it may be out of date.
The fight with Apple and Google
In 2020, Epic deliberately broke Apple's and Google's app store rules by offering Fortnite players a direct payment option, avoiding the stores' 30% commission. Both companies removed Fortnite, and Epic sued them. Against Google, a jury found in Epic's favour in 2023, leading to court-ordered changes to Google's Play Store. Against Apple, Epic mostly lost at trial but won a ruling requiring Apple to allow developers to link to outside payment options; a later contempt finding in 2025 forced Apple to loosen its rules further, and Fortnite returned to the US App Store. These cases have reshaped how app stores operate and opened the way for alternative stores and payment methods, including Epic's own mobile store in Europe after the EU's Digital Markets Act.
Layoffs and restructuring
In September 2023, Epic laid off about 16% of its staff, around 830 people, and sold Bandcamp. Sweeney said the company had been spending far more than it earned, betting on growth that didn't come fast enough. The cuts were aimed at returning to financial stability while continuing to invest in Fortnite's creator economy and Unreal Engine.
Competitive landscape
Fortnite competes with Roblox, Minecraft, Call of Duty and other games for players' time. Unreal Engine competes mainly with Unity. The Epic Games Store competes with Valve's Steam, which dominates PC game sales. Epic's advantages are Fortnite's cultural reach, Unreal Engine's technical leadership, and partnerships with Disney, Sony and LEGO.
What to watch next
Watch the launch of Disney's Fortnite-connected universe, growth of creator-made Fortnite content, Unreal Engine adoption beyond games, mobile store expansion after the app store rulings, and any new funding or ownership changes.
Key facts at a glance
Epic Games is a Cary, North Carolina company founded in 1991 by Tim Sweeney, who remains CEO and controlling shareholder. It makes Fortnite and Unreal Engine and runs the Epic Games Store. Sony and KIRKBI invested US$2 billion at a US$31.5 billion valuation in April 2022, and Disney announced a US$1.5 billion equity investment in February 2024. Tencent has been a major shareholder since 2012.
Why strategic investors back Epic
Epic's investors are mostly strategic partners rather than financial funds. Sony makes PlayStation, where Fortnite is popular. KIRKBI's LEGO partnered with Epic on LEGO Fortnite. Disney wants a presence in games, where younger audiences spend much of their time. Tencent is one of the world's largest gaming companies. For these partners, a stake in Epic brings commercial cooperation as well as financial return. For Epic, strategic investors provide large amounts of capital without pressure for a quick IPO, since they care about the partnership as well as the share price.
Reading valuations of founder-controlled companies
When a founder controls a company, outside investors have limited influence over strategy, IPO timing or a sale. That can affect what investors are willing to pay, and secondary market prices may trade at a discount to the last official round. Our guide to down rounds explains how valuations can fall between rounds, and our guide to researching private companies covers using court filings and other public sources when financials aren't published.
What this means if you're…
A game developer: compare engines and stores on royalties, tools and audience reach.
A brand or media company: Fortnite events and branded experiences can reach very large young audiences.
An investor: treat the 2022 valuation as a historical marker and watch for new pricing.
Latest developments (October 2026)
Two developments update this profile. First, Disney's February 2024 investment of US$1.5 billion valued Epic at about US$22.5 billion, according to The Information as reported by Reuters, roughly 29% below its 2022 valuation of US$31.5 billion; neither company confirmed the figure. Second, in March 2026 Epic cut about 1,000 jobs, with chief executive Tim Sweeney saying the company was spending significantly more than it was making after a decline in Fortnite engagement, and identifying more than US$500 million of other cost savings, according to Bloomberg.
Sources
Every figure on this page comes from the public sources below. Where sources disagreed, we used the company's own announcement or a primary news report. Private-company data changes; check the date beside each figure.
Frequently asked questions
What does Epic Games do?
Epic Games is a gaming / games, game engine and digital store company headquartered in Cary, North Carolina, United States. It was founded in 1991.
What is Epic Games's valuation?
Epic Games was valued at About US$22.5 billion (reported) as of February 2024, according to Reuters (citing The Information). Private company valuations are set at funding rounds or share sales and can change significantly between them.
How much revenue does Epic Games make?
Epic Games is a private company and has not publicly disclosed its revenue. Figures on third-party sites are usually modelled estimates rather than numbers reported by the company.
What was Epic Games's latest funding round?
The most recent financing we have verified is a strategic investment in Feb 2024: US$1.5B, at a valuation of Not disclosed by Disney. Source: CNBC.
Who are Epic Games's investors?
Investors named in public announcements include The Walt Disney Company, Sony Group, KIRKBI and Tencent.
Who founded Epic Games?
Epic Games was founded in 1991 by Tim Sweeney (CEO).
Is Epic Games a public company?
No. Epic Games is a private company (private (controlled by founder tim sweeney)), so its shares are not traded on a stock exchange and it isn't required to publish its financial results.
Where is Epic Games headquartered?
Epic Games is headquartered in Cary, North Carolina, United States.