How to Invest in Epic Games

The company's uber-popular game and gaming engine generate epic amounts of revenue. You might even be among the millions who have spent money on the company's platform. That commercial relationship could have you wondering how to invest in the company and get a slice of its upside potential. Here's a look at how to invest in Epic Games and some factors to consider before doing so.

Is Epic Games publicly traded?

As of late 2024, Epic Games had not completed an initial public offering (IPO). Because it isn't publicly traded, investors can't buy the company's shares on a stock exchange with their brokerage account.

Who owns Epic Games?

Epic Games is a privately held company owned by:

1. Tim Sweeney: Founder and CEO Tim Sweeney owns about half of Epic Games' stock.
2. Tencent (OTC:TCEHY): The Chinese technology and entertainment company holds about 40% of Epic Games stock.
3. Sony (NYSE:SONY): The Japanese entertainment company has about a 4.9% stake in Epic Games.
4. Kirkbi: The holding company that owns The Lego Group has a 3% interest in Epic Games.
5. Disney (NYSE:DIS): In 2024, Disney invested $1.5 billion to acquire an equity stake in Epic Games (about 9%). As part of the agreement, Disney and Epic will collaborate on an all-new games and entertainment universe.

Will Epic Games IPO?

As of late 2024, Epic Games didn't have an IPO on the calendar. Yet, there has been speculation since 2021 that the company would complete one. However, with the capital provided by its strategic investors, including bringing Disney into the fold in early 2024, Epic Games doesn't need to raise money, reducing the need to go public.

How to invest in Epic Games

You can't invest directly in Epic Games until it launches an IPO. However, you can get some exposure to the company's upside by investing in one of the three publicly traded companies that own shares: Tencent, Sony, and Disney.

Chinese tech and entertainment titan Tencent trades on the OTC market, enabling anyone to buy shares through their brokerage account. Global technology and entertainment behemoth Sony trades on the New York Stock Exchange (NYSE). Entertainment, sports, and experiences giant Disney also trades on the NYSE.

Given that it holds 40% of the company's shares, Tencent has the most exposure to Epic. However, that's a small piece of its massive communications, digital content, and financial technology (fintech) services platform. Tencent has invested in more than 800 companies, including the Chinese super app WeChat.

Likewise, Epic is a small part of Sony's empire. The company is one of the largest makers of electronic products, the top video game console producer (PlayStation), and the biggest video game publisher. Sony Entertainment is also one of the biggest music publishers, a leading record label, and a top film studio.

Finally, Disney now owns a stake in Epic after investing $1.5 billion in the gaming company in 2024. An investment in Disney involves not only gaming but also sports, entertainment, and experiences. For people who really want to own a small slice of Epic Games, Tencent, Sony, or Disney are currently the only way to gain exposure to the company until it completes an IPO.

Alternatives to investing in Epic Games

Another option to consider is investing in a different video game stock. Alternatives include:

1. Take-Two Interactive (NASDAQ:TTWO): Take-Two Interactive developed the hit game franchises Grand Theft Auto, NBA 2K, and Red Dead Redemption.
2. Electronic Arts (NASDAQ:EA): EA is the company behind leading sports franchises Madden and FIFA.
3. Roblox (NYSE:RBLX): Roblox's online platform and storefront enable users to play games developed by other users.

Should I invest in Epic Games?

Although you can't invest in Epic Games yet, here are some factors to consider before doing so should the company launch an IPO in the future.

Is Epic Games profitable?

Because Epic Games is a private company, there is little publicly available information about its finances. However, according to documents released by Apple (NASDAQ:AAPL) relating to a legal battle to get Fortnite on the App Store, Epic Games isn't yet profitable. The company reportedly lost between $100 million and $200 million annually from 2019 through 2021.

As of late 2024, its Epic Games Store was still losing money, as it focused on growth in an attempt to grab market share from Apple and Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL). Epic reportedly lost an estimated $1 billion in revenue during its battle with Apple when it wasn't allowed on its app store. According to CEO Tim Sweeney, the fight also cost hundreds of millions in legal fees.

It's common for growing technology companies to lose money. They're typically investing heavily in new products. In Epic's case, it's investing in expanding its Epic Games Store and developing new games.

Revenue

According to Statista, Epic Games was on track to generate $5.8 billion in revenue in 2024. Statista predicts that Epic Games revenue will reach $6.2 billion by 2026.

That's a lot of money, more than some of the competing publicly traded gaming companies. For example, Roblox was on pace to generate more than $3.5 billion in revenue in 2024. Meanwhile, its sales rival Take-Two Interactive, which expects to generate $5.6 billion to $5.7 billion in its 2025 fiscal year. However, EA had much higher sales at $7.1 billion to $7.5 billion of total net revenue in its 2025 fiscal year.

Valuation

Epic Games raised $1.5 billion in additional funding in early 2024 when Disney invested $1.5 billion in the company to build a universe based on Disney characters. That investment valued Epic Games at $22.5 billion, a notable step down from its prior valuation of $31.5 billion.

To put the company's private market value into some context, it's less than many other publicly traded game makers. At a market cap of almost $43 billion in late 2024, EA was the most valuable. Meanwhile, Roblox had an almost $40 billion market value, and Take-Two's market valuation topped $33 billion.

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