Disney Invests $1.5 Billion in Epic Games, Collaborates with Fortnite Developer on Fresh Content
Disney is making its largest move yet into the gaming industry, announcing a $1.5 billion investment in Epic Games, revealed by CEO Bob Iger on Wednesday.
The entertainment powerhouse intends to collaborate closely with the creators of Fortnite to develop new games and establish an immersive entertainment universe. This platform will offer consumers the opportunity to “play, watch, shop, and engage with content, characters, and stories from Disney, Pixar, Marvel, Star Wars, Avatar, and more,” as stated in a Disney press release.
While the exact valuation of Epic, a privately-held company, post-Disney’s investment was not disclosed, Iger described this venture as Disney’s most significant entry into the gaming sector to date. He emphasized the strategic importance of this move, considering the shifting media consumption patterns among demographics like Gen Alpha, Gen Z, and millennials.
This collaboration builds upon Disney’s prior success in licensing iconic characters for blockbuster video games and their ongoing partnership with Epic, which has seen popular characters from Marvel, Star Wars, “The Nightmare Before Christmas,” and “Tron” integrated into Fortnite.
The deal represents another major partnership for Epic, known for its innovative ventures like collaborating with Lego for a survival crafting game within Fortnite and launching Fortnite Festival, a rhythm game developed by Harmonix.
Epic Games founder and CEO Tim Sweeney highlighted Disney’s early belief in merging their respective worlds within Fortnite and their widespread use of Epic’s Unreal Engine across Disney’s portfolio. The collaboration aims to create a cohesive ecosystem that bridges the Disney and Fortnite communities.
Beyond Fortnite, Epic Games has made headlines for its legal battles with tech giants like Apple and Google over app store fees. Sweeney played a pivotal role in these legal challenges, securing a victory against Google and making strides against Apple, though the latter decision is expected to be appealed.
Source: CNBC
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