Epic Games denies rumors that it’s aiming for an IPO

    
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why does this continue

It’s a pretty well-known fact that Epic Games is doing pretty well for itself between the success of Fortnite and the ongoing popularity of the Unreal engine. As a result, when someone spied the company hiring someone to work in Investor Relations, the supposition was that the company was getting ready to put forth an IPO (in other words, making a public stock offering). The company has responded to those rumors by roundly denying them via a spokesperson’s statement:

It’s fairly common for companies of our size to hire people to help broaden and deepen relationships with existing investors and build new relationships. Epic is always monitoring the market and is prepared to consider opportunities as they arise, but right now we are focused on investing in our business, executing against our opportunities, and delivering value to our investors.

Of course, the company also has no shortage of investors, including heavy investment by Disney and of course the well-known partial ownership by Chinese gaming giant Tencent. It’s not hurting for invested cash, in other words. It still remains to be seen if the company’s investment strategy will change in the future, but for now, there’s no IPO in the cards for Epic. (Which means that any “epic investment” jokes will have to wait.)

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raph

We already have a issue with major developers valuing $$$ over actual product development and content*cough* blizzard *cough* EA .
Being openly traded will amplify this problem with the added stress. As well as expose them to outside interests.

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Bryan Correll

The only way Epic is going public is if Tim Sweeney wants to divest and Tencent doesn’t want to buy him out. And it wouldn’t be a good idea as long as the company is feuding with both Apple and Google.

Zulika Mi-Nam
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Zulika Mi-Nam

I agree with all of your points.

….and yet the fact they denied it makes me think they are looking at ways to do it.

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Mark Jacobs

Zulika,

Actually, they didn’t deny it, they just said that they are focusing on other things. :)

Perfect way to neither confirm nor deny it but in a way that it looks like a denial but later, they can say that they taking exploratory steps with outside firms so they were being honest about the focus thing.

And the thing to consider is that unless investors are getting payments from Epic, there must be tremendous pressure on Tim to sell Epic or take it public with the state of game industry valuations and IPOs. Zenimax was under that same kind of pressure from its investors and Altman delivered a grand slam home run for them. I guarantee you that Tim’s investors are thinking the same thing *unless* they are getting a significant piece of the action to assuage them. If Unity had a 40B market cap, and Roblox may go public with a 17B one, what would the company who has one of the top games in the world, the best overall engine in the world, and a whole lot of other stuff worth?

Epic’s success/importance is undeniable, but for its investors it doesn’t help them all that much unless they can get their money out in a big way. There is however a big difference with Tencent vs. the other investors, they can afford to wait if they want to. Most other investors, won’t want to miss this opportunity if they think that Epic is at the height of its value or they believe that this super-heated game industry can’t stay that way forever.

Mark

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Utakata

So plausible denial is plausible? o.O

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Bryan Correll

Plausibly.