Could Epic Games file for an IPO? PitchBook says it's a strong candidate

Cary-based Epic Games has been a privately held company since it was founded by Tim Sweeney in 1991.

Yes, but: With billions of dollars in funding and high-profile partnerships with companies like Disney and Sony, the tech company has long been viewed as the region's best bet for a blockbuster initial public offering.

• Taking Epic Games — most recently valued at $31.5 billion — public would provide a flood money to its investors and longtime employees, many of whom are based in the Triangle.

Driving the news: PitchBook, a data provider that tracks venture capital, named Epic as one of 20 venture-capital backed companies most likely to go public this year.

What they're saying: Epic declined to comment but pointed to an interview Sweeney gave to the Wall Street Journal in November.

• Sweeney, the company's controlling shareholder, told the Journal he doesn't have current plans for an IPO but "could do that opportunistically at some point."

State of play: The case for Epic going public, according to PitchBook , is that the company's revenue is now diversified across video games, software (with subscriptions to its Unreal Engine) and uses of its tech outside the gaming industry, like in film.

• Plus, its most recent Fortnite release, which included a partnership with Lego, as well as improvements to Unreal Engine, show "positive indicators for future revenue growth," PitchBook's Eric Bellomo wrote.
• Yes, but: Epic's leadership team has long been noncommittal about a future IPO and its legal battles with Apple and Google and others could make its timeline more difficult, PitchBook noted.

By the numbers: PitchBook gives an IPO a 94% chance of being in Epic Games' future, noting its high valuation would make it quite expensive for another company to buy it.

• PitchBook gives Epic a 1% chance of being bought and a 5% chance of remaining a private company long term.