NEW YORK: Hollywood talent agency and entertainment giant Endeavor has agreed to sell its minority stake in Epic Games as part of the North Carolina-based company’s latest fundraising round, which is expected to come at a valuation of more than $15 billion, according to Bloomberg and The Hollywood Reporter.
The parent corporation of talent agency WME owns a minority piece of the video game company and is looking to sell a part of its stake for a high multiple. The news of the sale comes on the heels of a Bloomberg report last month that Epic is looking to raise an additional round of funding.
Endeavor, which is backed by American private equity major Silver Lake, owns other companies hit hard by fallout from the corona virus pandemic, including the Ultimate Fighting Championship (UFC). Silver Lake was recently in the news in India after it picked up a 1.15% stake in Reliance Jio, the telecom arm of Mukesh Ambani-controlled Reliance Industries Ltd.
Bloomberg reports that while Endeavor is not looking to sell any of its major properties, such as the UFC or WME, it is working to “dispose of non-core assets, in particular those that can reap a healthy return”.
While the size of Endeavor’s holding has not been reported, the sale of its minority stake in Epic Games – which owns the the hugely popular Fortnite title – could raise as much as $100 million, according to a report by the Information.
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