Walt Disney invests $1.5 billion in Epic Games, valuing the company at $22.5 billion
Walt Disney has recently made a significant investment in Epic Games, a well-known gaming company that is behind the popular title “Fortnite”. This investment has resulted in the valuation of Epic Games at $22.5 billion, marking a considerable decrease from its previous valuation two years ago, according to a report by The Information. This move has sparked a great deal of interest and speculation within the gaming and entertainment industries.
The Investment and Stake in Epic Games
The $1.5 billion investment made by Disney will give the entertainment powerhouse a 9 per cent stake in Epic Games, as per the report. This significant financial backing by Disney reflects the company’s confidence in the potential growth and success of Epic Games.
Valuation and Recent Funding
It is worth noting that Epic Games was valued at $31.5 billion in April 2022 following funding from Sony Group Corp and the family-owned holding company behind the Lego Group. This makes Disney’s investment a notable shift in Epic Games’ valuation. The valuation also aligns with the stakes marked by mutual funds such as Fidelity, T. Rowe Price, and Blackrock.
Creation of a “Huge Disney Universe”
The partnership between Disney and Epic Games is expected to lead to the creation of an expansive “Disney universe” within the gaming platform. This universe will allow consumers to interact with beloved characters and stories from Disney, Pixar, Marvel, Star Wars, and Avatar. The potential for such an immersive experience presents significant opportunities for both companies to capitalize on their vast intellectual properties.
CEO Bob Iger has expressed optimism about this venture, highlighting it as Disney’s largest foray into the world of games, with considerable potential for growth and expansion.
As of now, neither Disney nor Epic Games has issued a formal response to requests for comment from Reuters. Nevertheless, the implications of this partnership are undoubtedly generating widespread anticipation and excitement within the gaming and entertainment communities.
Source : www.bing.com