April 2025
Article
4 minutes
Top 10 Private Companies Progress Report: Epic Games
Claire Shaw – Portfolio Director
Epic Games is a prominent gaming platform operating in two main markets – video games and game engines.
In addition to having produced flagship titles like Fortnite, EPIC Games provides an end-to-end digital ecosystem for developers and creators to build, distribute and operate video games through the Unreal Engine, Epic Games Store and Epic Online Services.
Whilst Fortnite is free to play, revenue in their gaming division is generated through in-game purchases using Fortnite’s own in-game currency ‘V-Buck’ whilst Unreal Engine and Games Store generates revenues from royalties and licensing.
Epic Games is committed to pushing the boundaries of digital entertainment and fostering a vibrant community of creators and players. Its vision is to empower developers and redefine how people engage with digital content.
Key Facts
Operational Highlights
- At EPIC Games’ annual conference, the company announced they had hit new records in Fortnite, achieving an all-time peak of 110 million active users. Booking and engagement in Fortnite continues to be robust showing the game still remains appealing despite being eight years old.
- Epic’s new partnership with Disney enables game creation with Disney IPs such as Star Wars and Marvel, which could further increase engagement.
- The Epic Games Store also achieved significant milestones, with 70 million monthly active users in September 2024 and their creator community continues to grow at a great pace, with the number of creators nearly tripling from 24,000 in 2023 to 70,000 creators in 2024.
- The legal wars with Apple and Google, centred around the closed ecosystems of iOS and Android, continues with mixed results globally.
Financial Highlights
- In February 2024, Epic raised $1.5bn led by Disney as part of a broader partnership, valuing the company at $22.5bn at that point.
- In October 2024, CEO Tim Sweeney declared the company “financially sound” after a challenging period involving strategic layoffs, rebuilding and strong execution.
- There were no explicit statements on plans for an IPO (an initial public offering) made by the company during the year.
EV: Equity Values: the value of a company available to its shareholders. Shown throughout as at 31 December 2024. Logos courtesy of relevant companies. US Dollar.
Risk Factors
Unlisted investments such as private companies, in which the Trust has a significant investment, can increase risk. These assets may be more difficult to sell, so changes in their prices may be greater.
The trust invests in overseas securities. Changes in the rates of exchange may also cause the value of your investment (and any income it may pay) to go down or up.
About the author - Claire Shaw
Portfolio Director
Claire Shaw is a portfolio director and plays a prominent role in servicing Scottish Mortgage’s UK shareholder base. Before joining in 2019, she spent over a decade as a fund manager with a focus on managing European equity portfolios for a global client base. With a background in analysing companies and communicating investment ideas, Claire is also responsible for creating engaging content that makes the Scottish Mortgage portfolio accessible to all its shareholders. Beyond that, she works closely with the managers, meeting with portfolio companies and conducting in-depth portfolio discussions with shareholders.
Important information
This communication was produced and approved at the time stated and may not have been updated subsequently. It represents views held at the time of production and may not reflect current thinking.
This content does not constitute, and is not subject to the protections afforded to, independent research. Baillie Gifford and its staff may have dealt in the investments concerned. The views expressed are not statements of fact and should not be considered as advice or a recommendation to buy, sell or hold a particular investment.
Baillie Gifford & Co and Baillie Gifford & Co Limited are authorised and regulated by the Financial Conduct Authority (FCA). The investment trusts managed by Baillie Gifford & Co Limited are listed on the London Stock Exchange and are not authorised or regulated by the FCA.
A Key Information Document is available by visiting our Documents page.
Any images used in this content are for illustrative purposes only.
