Some recent events and rumor is suggesting that Epic Games might be considering going IPO.
Initial public offering (IPO) or stock market launch is a system where a company puts its shares for sale to public investors. After a company goes IPO its shares are listed on one or more stock exchanges. Going IPO is a massive step for any company as it has can have a huge impact on how a company operates. Going IPO shifts a company’s ownership from private to public and it can help a company get exposure, prestige, and public image. Also, it can enlarge and diversify the equity base.
Recently some rumors have been going around the internet that Epic Games, the creators of Unreal Engine, Fortnite, and House Party are considering going IPO.
Epic Games Going IPO:
Recently Epic Games hired for a new Investor Relations position. This sparked interest in many people online and a rumor started that this is a step towards Epic Games going IPO. Bloomberg tech columnist Tae Kim reacted to the new hire with an 👀 emoji.
Daniel Ahmed, regarding the previously mentioned tweet, said, “Seems like Epic Games IPO won’t be too far off. Not too surprising tbh”. He also answered another person’s question on what is IPO with an easy explanation.
His explanation of IPO is, “Initial Public Offering. Essentially the company goes public, lists on a stock exchange, and allows anyone to buy shares in the company. Unity is an example of a company in the games industry that recently went public. “
Epic’s biggest competitor Unity went IPO back in June 2020. Initially, IPO considered its value to be USD 13.7 Billion. But Unity’s stock price recently gaining massive popularity making its value USD 35 Billion currently. So Epic Games might be considering the same course of action.