Disney buys $1.5 billion stake in Epic Games to create a new 'universe'

Entertainment giant Disney has purchased a $1.5 billion stake in Epic Games and teamed up with the company to create something incredible.

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This partnership intends to develop a new expansive, open, persistent, and social universe that will seamlessly "interoperate" with the popular game Fortnite and let fans "play, watch, shop and engage" iconic characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar, and more.

The news was revealed during Disney's Q1 FY24 Earnings call, where it was said this new experience will be built entirely in Unreal Engine and will give players the ability to "create their own stories and experiences, express their fandom in a distinctly Disney way, and share content with each other in ways that they love."

"Our exciting new relationship with Epic Games will bring together Disney's beloved brands and franchise with the hugely popular Fortnite in a transformational new games and entertainment universe," said Robert A. Iger, Chief Executive Officer (CEO) of The Walt Disney Company. This will be Disney's biggest entry into the world of video games and will offer significant growth and expansion for both the company and its fan base.

"Disney was one of the first companies to believe in the potential of bringing their worlds together with ours in Fortnite, and they use Unreal Engine across their portfolio," said CEO and Founder of Epic Games Tim Sweeny. "Now we're collaborating on something entirely new to build a persistent, open, and interoperable ecosystem that will bring together Disney and Fortnite communities."

As of writing, no further details have been given about this project or when fans can expect to see it materialize, but it is said to be a "multi-year project" and will expand on Disney and Fortnite's previous collaborations.