Sony has published a press release announcing that it has agreed to make a $250 million strategic investment in Epic Games. The investment is currently still subject to customary closing conditions, which include regulatory approvals. However, assuming the investment goes through, it will give Sony a minority stake in Epic Games of 1.4%, according to VentureBeat. Some quick math tells us that the investment deal values Epic Games at $17.86 billion.
The press release states that “The investment cements an already close relationship between the two companies.” It became apparent that the companies had been working closely together when Epic’s Unreal Engine 5 was revealed in a real-time demo running on the upcoming PlayStation 5. Tim Sweeney, Founder and CEO of Epic Games, confirmed a few days after the demo reveal that Epic and Sony had been working on the demo, Nanite, Lumen, and Epic Online Services for cross-platform play in the months leading up to the demo reveal.
However, he recently stated that it wasn’t until after the Unreal Engine 5 demo reveal that serious talks regarding investment began. Sweeney also added, “I guess they liked it!” This assessment certainly seems true in light of the statement made by Kenichiro Yoshida, Sony’s Chairman, President, and CEO:
Epic’s powerful technology in areas such as graphics places them at the forefront of game engine development with Unreal Engine and other innovations.