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Sony is the new shareholder in Epic Games

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
$250 million from Sony for Epic Games

Just earlier, we discussed how Amazon is to purchase Zoox, and now we will move from self-driving cars to games. Sony just made a $250 million investment in Epic Games, which operates the game Fortnite. Currently, the game is the largest globally, with more than 350 million accounts, and 2.5 billion connections. Fortnite brought $400 million in revenue this April only.

The deal gives Sony a minority stake of 1.4% in the game and software development, and publishing company, which has a valuation of $17.86 billion. 

Both companies are looking to create extraordinary experiences for consumers and creators using Epic's social entertainment platform, and "Sony's leading portfolio of entertainment assets and technology." The focus will be on developing the companies' vision regarding real-time 3D experiences and implementing it further in games, films, and music. Moreover, the two companies are likely to create and release more Fortnite-like virtual experiences, which will resemble the in-game Travis Scott concert tour. However, the deal won’t force Epic to release only Sony exclusive titles.

Epic Games is no stranger to having important investors. In 2012, Tencent invested $330 million to have a 40% stake in the studio.  

The market approved the deal, as Sony stock price went up 2.49% during yesterday’s session, and today is keeping the pace, with an increase of 2.19% in pre-market. 

Sources: thestreet.com, businesswire.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.