Disney Buys Partial Stake in Epic Games for $1.5 Billion
Disney:
The Walt Disney Company and Epic Games will collaborate on an
all-new games and entertainment universe that will further expand
the reach of beloved Disney stories and experiences. Disney will
also invest $1.5 billion to acquire an equity stake in Epic Games
alongside the multiyear project. The transaction is subject to
customary closing conditions, including regulatory approvals.
In addition to being a world-class games experience and
interoperating with Fortnite, the new 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.
Corey Weinberg, at The Information:
Disney’s $1.5 billion investment in Epic Games values the Fortnite
maker at $22.5 billion, a person familiar with the matter said.
The price is about a 29% drop from where investors last valued the
company less than two years ago.
The investment makes the “Fortnite” maker one of the largest
private, venture-backed companies to sell new shares at a steep
discount since higher interest rates hit tech valuations. Disney’s
$1.5 billion investment will dilute existing Epic shareholders by
9%, the person said. The size of the investment would imply a
roughly 7% stake in the company.
The interesting third wheel in this relationship is obviously Apple. Apple is exceptionally cozy with Disney — from the whole Steve Jobs thing with Pixar to Bob Iger appearing in last June’s WWDC keynote to help Tim Cook announce Vision Pro. Apple is not so cozy with Epic Games.
Will this change anything on that front? If these new experiences require Fortnite to play, right now that rules out playing them on iPhone, iPad, or Vision Pro, because Epic Games no longer has an Apple developer account for Fortnite.
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Disney:
The Walt Disney Company and Epic Games will collaborate on an
all-new games and entertainment universe that will further expand
the reach of beloved Disney stories and experiences. Disney will
also invest $1.5 billion to acquire an equity stake in Epic Games
alongside the multiyear project. The transaction is subject to
customary closing conditions, including regulatory approvals.
In addition to being a world-class games experience and
interoperating with Fortnite, the new 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.
Corey Weinberg, at The Information:
Disney’s $1.5 billion investment in Epic Games values the Fortnite
maker at $22.5 billion, a person familiar with the matter said.
The price is about a 29% drop from where investors last valued the
company less than two years ago.
The investment makes the “Fortnite” maker one of the largest
private, venture-backed companies to sell new shares at a steep
discount since higher interest rates hit tech valuations. Disney’s
$1.5 billion investment will dilute existing Epic shareholders by
9%, the person said. The size of the investment would imply a
roughly 7% stake in the company.
The interesting third wheel in this relationship is obviously Apple. Apple is exceptionally cozy with Disney — from the whole Steve Jobs thing with Pixar to Bob Iger appearing in last June’s WWDC keynote to help Tim Cook announce Vision Pro. Apple is not so cozy with Epic Games.
Will this change anything on that front? If these new experiences require Fortnite to play, right now that rules out playing them on iPhone, iPad, or Vision Pro, because Epic Games no longer has an Apple developer account for Fortnite.