Disney’s Epic Deal Values Fortnite Maker at $22.5 Billion, a Sharp Cut

Disney’s $1.5 billion investment in Epic Games values the Fortnite maker at $22.5 billion, a person familiar with the matter said. The price is about a 29% drop from where investors last valued the company less than two years ago.

The investment makes the “Fortnite” maker one of the largest private, venture-backed companies to sell new shares at a steep discount since higher interest rates hit tech valuations. Disney’s $1.5 billion investment will dilute existing Epic shareholders by 9%, the person said. The size of the investment would imply a roughly 7% stake in the company.