Thursday, February 8th 2024

Disney Acquiring $1.5 Billion Stake in Epic Games, Multi-year Collab Project Teased

The Walt Disney Company has announced a new collaborative venture with Epic Games—yesterday's press release outlined the creation of an upcoming "all-new games and entertainment universe that will further expand the reach of beloved Disney stories and experiences." Epic's Fortnite appears to be the first port of call for an expanded roster of Disney-owned characters and locales (perhaps for seasonal and time limited events)—new interactive projects will emerge at later time: "(our) persistent universe will offer a multitude of opportunities for consumers to play, watch, shop and engage with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar and more. Players, gamers and fans will be able 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. This will all be powered by Unreal Engine." Additionally, the press briefing mentions a big money transaction: "Disney will also invest $1.5 billion to acquire an equity stake in Epic Games alongside the multi-year project. The transaction is subject to customary closing conditions, including regulatory approvals."

The Walt Disney Company's Chief Executive Officer—Robert A. Iger—stated: "Our exciting new relationship with Epic Games will bring together Disney's beloved brands and franchises with the hugely popular Fortnite in a transformational new games and entertainment universe. This marks Disney's biggest entry ever into the world of games and offers significant opportunities for growth and expansion. We can't wait for fans to experience the Disney stories and worlds they love in groundbreaking new ways." Tim Sweeney, Epic Games CEO and Founder also chipped in with: "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. Now we're collaborating on something entirely new to build a persistent, open and interoperable ecosystem that will bring together the Disney and Fortnite communities." Disney's introductory piece includes a teaser image that shows an overhead perspective of a Fortnite-esque digital theme park—several circular floating islands are dotted with well known franchise graphics and company logos. A 43-second video montage also presents similar content, with the narrated message: "Discover a place where magic is Epic." Fortnite is listed alongside Marvel, Star Wars, Pixar and Disney IPs.
Sources: The Walt Disney Company, Polygon, Eurogamer
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41 Comments on Disney Acquiring $1.5 Billion Stake in Epic Games, Multi-year Collab Project Teased

#1
natr0n
I forget Disney owns almost everything now. Wait and see now.
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#2
TechLurker
Considering that Disney had made major use of Unreal Engine in their special studio for much of Mandalorian and similar, it actually doesn't surprise me that they might want to have a bigger stake in its development. Moreso for interactive park elements, which they've been wanting to do for years.
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#3
Chrispy_
Ugh, just what the video games industry doesn't need; involvement from yet another IP-hoarding, highly litigious (perhaps the single most litigious entity on earth), greedy, soulless and supermassive megacorp that has failed to show any real promise, innovation, or new thinking in my entire adult lifespan.

I really want to be wrong but I suspect no good things will come of this. History is repeating itself and the industry keeps failing to learn from its mistakes.
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#4
SOAREVERSOR
Merging media studios with games studios was always going to happen. One corporation to rule them all! The end stage of all capitalism without heavy government regulation and high taxation. Oh well, capitalism going to capitalism.
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#5
R0H1T
Chrispy_or new thinking in my entire adult lifespan.
Well don't you miss another Marvel/MCU super villain :D
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#6
bonehead123
Chrispy_Ugh, just what the video games industry doesn't need; involvement from yet another IP-hoarding, highly litigious (perhaps the single most litigious entity on earth), greedy, soulless and supermassive megacorp that has failed to show any real promise, innovation, or new thinking in my entire adult lifespan.

I really want to be wrong but I suspect no good things will come of this. History is repeating itself and the industry keeps failing to learn from its mistakes.
Yep, just what we need, a fubarred, clusterf*cked uber-corp getting it's grubby paws on yet another franchise that was doing pretty well on it's own, just so they can apply their own special brand of completely mindless oversight/micro-management, cost cutting, employee layoffs, and other gobbly-gook crap that mega-corps always do after a takeover/merger/buyout.....

And make NO mistake about it, this so-called "investment" is just a mildly-disguised precursor to an actual, complete takeover of Epic....and then we will all be cryin :(

As for the history thing, well....the big G said it best ~80 years ago....

"History teaches us that history teaches us NOTHING" - General George S. Patton
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#7
NC37
SOAREVERSORMerging media studios with games studios was always going to happen. One corporation to rule them all! The end stage of all capitalism without heavy government regulation and high taxation. Oh well, capitalism going to capitalism.
Disney already has it's own game studios. They'd want more than something so simple. Why must it take regulation and taxes to reign a corporation in? What do businesses do in highly regulated and taxed environments? They find ways around the law. Single entities split themselves into numerous smaller ones and skirt it. Who suffers most from it is not corporate but the employees who get shuffled around. If the smaller entity underperforms, it is quick to be shuttered. Where regulation should come in the most is in conglomerate creation where monopolies happen. Smaller companies that get gobbled up to feed the conglomerate is the issue and many of them wouldn't get gobbled up if they didn't face high taxation as their business grows.

So government should do x or y? Disney has gotten giant because of regulators looking the other way over the last 20-50yrs. Same can be said for a lot of the giant conglomerates. Government can be bought and paid, especially if the right leaders are installed. So you cannot trust government to regulate properly unless you have a system in place and the right people involved to make sure laws are enforced. Then a public always made aware they exist and why. Education defeats totalitarianism and corruption. When it is corrupted, the government and the corporations can do whatever they want as long as the masses are well distracted.
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#8
Cruise51
Just about the worst thing that could happen to the gaming industry. Disney
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#9
Noyand
Chrispy_, soulless and supermassive megacorp that has failed to show any real promise, innovation, or new thinking in my entire adult lifespan.
It depends on which sector you are looking: the MCU is losing its edge, Endgame was pretty much the peak, they have a loooot of cookie cutter stuff, but a few gems once in a while. It's not common knowledge, but Disney is also a tech powerhouse when it comes to 3D and animation, and their tech is open source. They also have lots of documentations, data sets from their movies to learn from. Pretty interesting if you are a nerd about those things.
disneyanimation.com/open-source/
disneyanimation.com/publications/?

In video games though ? Kingdom hearts is the only substantial thing that I can think of, and I have no doubt that their collab with Epic is targeted at die hard fans of their franchise. I don't expect nothing too crazy to came out of this
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#10
Mysteoa
More money for metaverse, so they can fire even more people when it fails again.
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#11
rv8000
Cruise51Just about the worst thing that could happen to the gaming industry. Tencent, Epic Games & Disney
FTFY
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#12
Minus Infinity
Everything Disney has done in the last 5 years has been a disaster. This is the last company I'd ever want buying a share in my company. They have destroyed the MCU, they have ruined Starwars, they have even ruined old Disney movies. Bob Iger is a total moron so expect a cluster fcuk of epic proportions.
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#13
Darmok N Jalad
SOAREVERSORMerging media studios with games studios was always going to happen. One corporation to rule them all! The end stage of all capitalism without heavy government regulation and high taxation. Oh well, capitalism going to capitalism.
More anti-capitalism talk. It’s the same system that brings us the advancing technology you know and love. I think maybe your real problem is with people chasing greed and power, which will exist in all economic systems. No, capitalism says you have the right to own property, which affords you protections you might not otherwise have. One big example that comes to mind is where the police can’t just walk into your place of residence and start searching through it, because it’s your capital.
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#14
ir_cow
RIP Epic. Everything Disney touches is dissolved or ruined within 2-3 years.

I assume this sake is done so they don't have to pay for unreal engine usage in TV shows and movies with that seamless background screen. Cheaper in the long run.
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#16
Icon Charlie
Chrispy_Ugh, just what the video games industry doesn't need; involvement from yet another IP-hoarding, highly litigious (perhaps the single most litigious entity on earth), greedy, soulless and supermassive megacorp that has failed to show any real promise, innovation, or new thinking in my entire adult lifespan.

I really want to be wrong but I suspect no good things will come of this. History is repeating itself and the industry keeps failing to learn from its mistakes.
Agree with this comment. Instead of Disney taking care of it's internal issues, they instead did this to try to stop a hostile taking over of the company. I do NOT like people like Iger.
I did NOT like the financial report as it was hiding the usual facts such as LOSS of subscribers etc which was made up with increases in prices on just about everything they sell.

At this moment everything Disney touches by Iger is destroyed.
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#17
Pumper
If it ends up killing Fortnite, I don't see an issue here, it's not like Epic has been developing any games in the recent decade.
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#18
KrazyT
natr0nI forget Disney owns almost everything now. Wait and see now.
Yes, literally it's Disneyworld :)
ir_cowRIP Epic. Everything Disney touches is dissolved or ruined within 2-3 years.

I assume this sake is done so they don't have to pay for unreal engine usage in TV shows and movies with that seamless background screen. Cheaper in the long run.
I fear the free games on Epic won't last long :/
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#19
ir_cow
@KrazyT As I claim my free games this week :) ... Yeah it will go bye bye soon.
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#20
R0H1T
I doubt that, EGS' dead if they don't "sell" free games!
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#21
Arkz
Oh great, something else for Disney to ruin.
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#22
azrael
PumperIf it ends up killing Fortnite, I don't see an issue here, it's not like Epic has been developing any games in the recent decade.
Not unlike Valve.

Anyway, I agree with the majority of comments. This is probably as bad as can be. Looking forward to games etc tailored towards "modern audiences".
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#23
theouto
ir_cowRIP Epic. Everything Disney touches is dissolved or ruined within 2-3 years.
God I hope epic is dissolved within 2-3 years, would do us all a solid.
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#24
Onasi
theoutoGod I hope epic is dissolved within 2-3 years, would do us all a solid.
Honestly, while this is unlikely, it would be nice. Same as it would be nice if MS breaks their neck with the Activision stuff. The industry NEEDS to be badly burned to cool the appetite for these mega mergers and constant acquisitions. It’s not healthy. We might actually be well served by another big crash at this point.
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#25
cosminmcm
Get ready for only black trans women as protagonists
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