Investors have the chance to purchase a share of profitable businesses on the stock market. Owners of a firm that is listed on an exchange may earn as the business develops and investors drive up the share price. However, each company’s founders and executives must decide whether to go public and offer shares for sale.
Some businesses choose to go public in order to increase funding and compensate founders and executives. Others don’t in order to avoid being scrutinized by the public and to closely monitor their operations and revenues.
It’s critical to remember that Epic Games is now private and not tradeable on the stock market if you’re interested in investing in the company’s shares. However, Epic Games shareholders might decide in the future to do an initial public offering (IPO).
Epic Games’ Narrative
Tim Sweeney established Epic Games in 1991, and Mark Rein later became a partner. Both the Unreal Engine and popular games were created by the business. The business provided other game developers with this software framework in exchange for a cut of their profits.
The business released “Fortnite,” a massively popular game, in 2011. More than 350 million people played this online battle royale platform in 2021, and as of 2020, it was bringing in more than $5 billion a year from in-game transactions.
Along the way, Epic Games has bought out a number of smaller businesses, including Bandcamp and Sketchfab.
Issues With Public Trading
The numerous legal and financial procedures that would accompany a public listing are a drawback. The private corporation would go from being extremely private to being highly public, with quarterly financial reports, investor meetings, analyst conference calls, ongoing news coverage, and responsibility for management choices.
Without a sure, the corporate world would make a big deal out of an Epic Games IPO in 2022 or later. One of the biggest game developers in the globe is called Epic. It’s a leading indicator for a significant media and entertainment industry.
The venture capital firms that have financed and backed Epic would also get compensation from an IPO. But Sweeney hasn’t demonstrated any interest in going public with his business. However, since Epic has no problem producing and obtaining money as a private firm, the CEO is not required to.
Just In Case
Follow news releases and announcements on the Epic Games website if you’re an investor intending to buy shares in the company one day. The business would probably disclose its plans well in advance of the IPO date. This is standard practice for businesses seeking to generate interest in their upcoming shares as they prepare to go public.
There are various listing criteria for each stock market. For instance, the Nasdaq market needs a minimum of 100,000 shares for the public “float,” $4 million in assets, and a $3 minimum bid price for the stock. The Securities and Exchange Commission also demands an S-1 file from every business going public, which divulges financial data and the ownership structure.
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