Epic Games raises $2 billion in funding to accelerate metaverse plans

Another round of investment has seen Epic Games' valuation jump to a cool $31.5 billion. Here is what the company plans to do with the fresh funds.

Epic Games has bagged massive funds for its vision of creating a metaverse in the near future. Backed by the existing investor Sony Group Corporation and Kirkbi, the company has raised a $2 billion round of funding for the cause and has specified its intentions for the same in a recent note.In its announcement, Epic Games mentions where it plans to direct the funds. As per Tim Sweeney, CEO and Founder of Epic Games, the investment will propel the company's work "to build the metaverse and create spaces where players can have fun with friends, brands can build creative and immersive experiences and creators can build a community and thrive.”Interestingly, the new round of funding values Epic Games at a whopping $31.5 billion. Of the $2 billion funds, both Sony and Kirkbi, the holding and investment company behind The LEGO Group, account for $1 billion each. All three companies are on board with the idea that the funds will be used to create "new social entertainment" which will rely on the "connection between digital and physical worlds."With the deal, both Sony and Kirkbi will rely on Epic Games' expertise to create a metaverse. While the company may not have one now, in theory, many of its gaming titles resemble what a metaverse would look like, including the massively multiplayer battle royale game Fortnite. In addition to its FPS action, the game lets players hang out in a digital world, much like what a metaverse will try to achieve.Sony says that it will merge its own technologies with Epic's game engines for the proposed metaverse. Through the digital world, the company will target "new digital fan experiences in sports" and its virtual production initiatives, as per Kenichiro Yoshida, Chairman, President, and CEO of Sony Group Corporation.On the other hand, Kirkbi already has set plans on the kind of metaverse it wants Epic to build. Last week, Epic Games and The Lego Group announced a partnership to create a metaverse for kids. The metaverse will provide digital playing opportunities and learning activities to kids in a safe environment online.The investments have only been announced and have not been closed just yet. As per the announcement, these are still subject to closing conditions, including regulatory approvals. Though as and when they are cleared, we can be assured of Epic's consistent efforts to come up with its own metaverse in the near future.