Epic Games launched a flopped attempt to raise cash last March in a deal that would have valued the company nearly 40% higher than what it settled for a few weeks later.
Epic had been in the early stages of launching a tender offer through the Nasdaq private exchange in which the informal price expectation from Epic employees who were selling their shares was for a $42 billion valuation.
No firm price was set at the time, as Epic was gauging interest from existing investors. But before those investors could examine the most current Epic finances, Epic shut down the tender process.
Sources say, that’s because the company’s bankers “went out and heard crickets” from the investors after initially giving notice of the possible tender.
A key problem, according to insiders, is a bruising battle with Apple over the iPhone maker’s fees for app developers. Epic sued Apple and Google in 2020 when the tech giants booted Fortnite from their app stores after Epic set up its own in-app payment system in a bid to dodge their hefty 30% cut of fees.
A federal judge in September largely ruled in Apple’s favor, except ruling that the gaming company could offer its own payment options to customers so they do not have to make purchases through the App Store.
Both sides have appealed the judge’s decision.
(All information was provided by The New York Post)
0 comments on “Epic Games Made Failed Funding Bid Ahead Of $2B Cash Raise”