Will Elon Musk Actually Buy Fortnite or Epic Games?
As an avid Fortnite player and content creator, this is a question I‘ve seen popping up a lot recently in my circles. And I‘m here to provide some deeper insight.
The short answer is: no, Elon Musk will likely not acquire Fortnite or Epic Games in the foreseeable future.
Epic Games continues to operate as a highly successful private company, with founder and CEO Tim Sweeney retaining majority control. There are no signs Sweeney intends to relinquish this control or sell, with Epic valued at over $31.5 billion as of April 2022.
But let‘s take a deeper look at why an acquisition still likely remains out of reach even for the world‘s richest man.
Why Won‘t Epic Games Sell Fortnite?
As a private company, the fate of Epic Games lies largely in the hands of founder and CEO Tim Sweeney.
Sweeney owns over 50% of the company‘s stock and has not indicated any plans to relinquish control. And he has good reason to retain ownership.
Since releasing Fortnite in 2017, Epic Games has experienced exponential growth, thanks primarily to the unprecedented success of its Battle Royale mode.
By 2018, Fortnite had amassed over $5 billion in revenue and over 200 million players. And while its hype has relatively stabilized, it continues raking in billions each year.
| Year | Est. Fortnite Revenue |
|---|---|
| 2018 | $5.4 billion |
| 2019 | $4.0 billion |
| 2020 | $5.1 billion |
| 2021 | $5.8 billion |
Table data from BusinessofApps
With Fortnite establishing itself as a long-term cash cow, Tim Sweeney has no reason to relinquish control of his rising private gaming empire.
But even if Epic Games hit turbulent times in the future, an acquisition by Elon seems… unlikely.
Could Elon Musk Actually Afford to Buy Epic Games?
Recently valued by investors at $31.5 billion, purchasing Epic Games would prove an incredible stretch even for Musk’s resources.
Musk’s net worth sits around $137 billion. But the majority is tied to his equity stakes in Tesla and SpaceX. He would likely struggle to free up sufficient liquid assets to outright buy Epic Games without serious financial reshuffling.
And based on Tim Sweeney’s messaging, any sale offer would need to greatly exceed Epic’s baseline valuation to justify relinquishing the CEO’s controlling stake.
With no need to sell, Epic has all the leverage to demand an otherworldly price. One that gives Musk pause.
Additionally, Epic Games would carry little synergy with Musk’s existing companies. Integrating it into his portfolio could prove an operational and financial distraction.
Which brings us to the final nail in this acquisition’s coffin…
Elon Musk Has Not Actually Expresses Interest in Buying Epic
Unlike Elon’s very vocal desire to take Twitter private, he has expressed no such interest in acquiring Epic Games or Fortnite.
His gaming industry investments remain relatively minor to date, like uplifting game developer Cold Iron Studios in 2018.
And Musk has focused recent attention on the social media space – not only vying for Twitter but also founding a new platform named X.com.
There are no signs he aims to enter the competitive gaming market anytime soon.
Of course, Musk has built his reputation around the unexpected. So maybe one day we could see a Musk-owned Fortnite.
But based on what we know today, it remains very improbable that Elon Musk will move to purchase Epic Games or acquire its golden goose, Fortnite. Certainly not while Tim Sweeney maintains controlling interest in Epic‘s destiny.
Those are my insights as an avid Fortnite gamer and industry commentator. Let me know if you have any other lingering questions in the comments below!
