Disney has entered into a $1.5 billion minority stake partnership with Epic Games, the creators of Fortnite, as announced by CEO Bob Iger on Wednesday. This venture marks Disney’s largest investment in the gaming industry to date. Iger also revealed plans for Disney and Epic Games to collaborate in developing a “Disney universe for gaming and for play and for watching.”
Epic’s popular third-person-shooter game Fortnite has experienced substantial financial success through microtransactions and collaborations with other popular franchises such as Dragon Ball, Stranger Things, and Family Guy. Meanwhile, Disney reported exceeded earnings expectations after reducing streaming costs and ushering in a new era for the company, according to an earnings report published after markets closed on Wednesday.
The move represents Disney’s efforts to diversify its revenue stream and capitalize on its well-established franchises, in line with other media companies like Warner Bros. Discovery and Netflix. However, the success of gaming as a means to compensate for the decline in linear TV business remains uncertain, given the time required to develop and release high-quality games.
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