Bandcamp Acquired by Songtradr Amidst Epic Games’ Restructuring
In a significant development, Epic Games, today, announced it is undergoing substantial restructuring, resulting in the layoff of around 16% of its staff, and notable divestitures, with Bandcamp being acquired by Songtradr.
Epic Games’ CEO, Tim Sweeney, notified employees of these developments through an email, highlighting the financial instability and unsustainability that led to these decisions. The email detailed, “We’re divesting Bandcamp and spinning off most of SuperAwesome,” emphasizing the gravity of Epic’s financial turbulence.
Bandcamp, a renowned platform supporting artists, finds itself joining forces with Songtradr, a prominent music marketplace company. This acquisition is pivotal for both entities as it combines Bandcamp‘s extensive artist support infrastructure with Songtradr’s expansive marketplace, potentially providing artists with enhanced exposure and additional avenues for income. It’s unclear at this moment how this change will affect Bandcamp’s operational dynamics and whether any alterations to its artist support mechanisms will ensue.
Tim Sweeney, expressing his remorse over the layoffs and divestitures, stressed the need for these measures to ensure financial sustainability. He stated, “I had long been optimistic that we could power through this transition without layoffs, but in retrospect, I see that this was unrealistic.”
Epic Games’ restructuring also sees significant portions of SuperAwesome becoming independent, maintaining its current brand and leadership under CEO Kate O’Loughlin. However, Kids Web Services (KWS) will continue to be part of Epic Games. The layoffs and restructuring are aimed at stabilizing the company’s finances without compromising the development or core lines of business.
Epic Games’ commitment to continue its fight against Apple and Google and to further invest in its flagship game, Fortnite, and other services for developers remains unwavering. Sweeney concluded by expressing optimism about Epic Games’ future prospects, despite the ongoing challenges.
For more information on Epic Games or to read the recent statement, you can visit their website here.