Disney announces purchase of stake in Epic Games for $1.5 billion

The Walt Disney Company announced Wednesday that it would invest $1.5 billion to acquire an equity stake in video game maker Epic Games.
The company said that it would create a “new persistent universe” within Epic Games’ Fortnite to integrate the company’s franchises within the gaming monolith.
“Our new relationship with Epic Games will create a transformational games and entertainment universe that integrates Disney’s world‐class storytelling into Epic’s cultural phenomenon,” Disney CEO Bob Iger said in the company’s first quarter earnings call. “This marks Disney’s biggest entry ever into the world of games and offers significant opportunities for growth and expansion.”
The investment was announced in the same earnings call that saw Disney announce that it won the streaming rights to “”Taylor Swift | The Eras Tour Concert Film” film for Disney+. It also came on the heels of a blockbuster agreement announced Tuesday between Disney, Fox and Warner Bros. Discovery for a joint sports streaming platform.
Disney has previously worked with Epic Games to create Fortnite character skins from Disney properties including Marvel, Star Wars and “The Nightmare Before Christmas.”
Epic Games partnered with LEGO to create a crafting mode within Fortnite. The company has also worked with Harmonix, the developers behind Rock Band, to add a musical mode called Fortnite Festival.
“We’re collaborating on something entirely new to build a persistent, open and interoperable ecosystem that will bring together the Disney and Fortnite communities,” Tim Sweeney, CEO and Founder, Epic Games said in a press release.
Just under 150,000,000 players play Fortnite worldwide, according to Fortnite Tracker. The earnings call did not provide a valuation for Epic Games.
Fortnite Chapter 5 Season ends at 2 a.m. ET March 8 (11 p.m. PT March 7).
Chapter 5 Season 2 is expected to launch March 8, 2024, according to Tech Radar.