Aussies take stake in Fortnite owner Epic Games at $US42b valuation – The Australian Financial Review

So the Australians now find themselves on Epic Games’ register, alongside the likes of BlackRock, Fidelity, Tencent, GIC and Ontario Teachers’ Pension Plan.

And they’re there ahead of Epic Games’ potential initial public offering, which is in the US float pipeline as a potential blockbuster deal for next year.

The investors were told the deal valued Epic Games at 8.3-times revenue, on an enterprise value to past 12-month revenue basis, or 6 to 8 times projected sales, according to materials seen by Street Talk.

Roblox and Unity, two publicly traded peers in the engine technology sector, trade at about 20-times forecast revenue and game publishers like Activision, EA and Take-Two are at about six times.

So the BFA crew reckon they’ve got a bargain. The pitch to potential investors was the Epic Games, which owns the powerful Unreal Engine that sits behind many of the world’s top games, films and anything else with graphics, could be worth $US51 billion to $75 billion if you believe it’s part engine, part game publisher. Its Fortnite has more than 350 million registered accounts globally.

Epic Games’ last funding round saw it raise $US1 billion for a $US28.7 billion valuation in April.

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