CARY – Hit hard by the coronavirus pandemic, entertainment firm Endeavor Group needs cash fast and is reportedly looking to unload part of its minority stake in Epic Games.
The windfall could be as much as $100 million, according to one of the sources familiar with the situation.
News of the sale was first disclosed by The Information, and later confirmed by The Hollywood Reporter.
It comes at a pivotal time for the Cary-based video games and software developer. As the world reels from a global pandemic, it has seen a surge in users during the quarantine.
Its flagship game “Fortnite” has surpassed 350 million registered users. In April alone, it logged more than 3.2 billion total hours played in-game, and hosted the wild popular Travis Scott concert attended by more than 12.3 million fans.
According to a Bloomberg report last month, Epic Games is also seeking to raise as much as $1 billion in new capital.
If the fundraiser happens, Epic’s valuation would increase substantially beyond the estimated $15 billion that PitchBook, Bloomberg and others estimated just over a year ago.
Endeavor, meanwhile, is hurting. Last month, the company — which owns talent agency WME as well as extensive live-event businesses — announced plans to lay off or furlough 20 percent of its staff amid the coronavirus crisis.
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