Disney to Invest $1.5 Billion in Epic Games, Plans Collaborative Universe Linked to Fortnite

Fans will have the opportunity to engage with Disney characters through watching, shopping, and playing within the Fortnite universe.

Walt Disney is acquiring a $1.5 billion (roughly Rs. 12,400 crore) equity stake in Fortnite maker Epic Games as part of a collaboration involving Disney properties like Star Wars, Marvel and Avatar, the companies said Wednesday.

Fans will be able to watch, shop and play with Disney characters within the Fortnite game, according to a statement Wednesday. The deal also involves new titles and a collaboration with the company’s theme parks.

“This marks Disney’s biggest entry ever into the world of games and offers significant opportunities for growth and expansion,” Disney Chief Executive Officer Bob Iger said in a release.

Creating a new universe ✨@Disney x Epic Gameshttps://t.co/gTwt5e3dpz pic.twitter.com/iPC0T2FlzU

— Fortnite (@FortniteGame) February 7, 2024

Disney has had its ups and downs with video games. In 2016, the company shut down much of its game operations after struggling to develop large, successful titles in-house. Now, Disney licenses properties to outside developers and publishers like Electronic Arts and Sony Group.

Disney and Epic have collaborated for years, including through Disney’s Accelerator program, where company executives mentor smaller businesses. Epic has offered Fortnite players avatars based on Star Wars, Marvel and Indiana Jones characters. Epic’s Unreal Engine software has been used to develop Disney games.

Epic’s CEO, Tim Sweeney, expressed, ‘Disney was one of the first companies to believe in the potential of bringing their worlds together with ours in Fortnite,’ in the statement.

The collaboration is set to unfold over several years, according to the companies. Epic will spearhead the development of these experiences internally.

This agreement follows Epic’s previous partnerships with major consumer product companies. In 2022, Kirkbi, the family holding company behind the Lego Group, invested $1 billion in Epic to create online experiences utilizing its brand. The release of Lego Fortnite last year, featuring characters in a blocky Lego style, drew as many as 2 million players shortly after its launch.