Disney invests $1.5 billion in Epic Games, the creators of Fortnite

Together, Disney and Epic Games, the creators of Fortnite, will create a «expansive and open games and entertainment universe.» Disney disclosed that it is investing $1.5 billion for an ownership share in Epic as part of the announcement.

According to a press release, the two businesses announced a collaboration that would increase the licensing of Disney properties within Fortnite and develop «a transformational new games and entertainment universe.» «Play, watch, shop and engage with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar and more,» according to Disney, will be possible in the new environment.

Disney made the news as its first-quarter earnings above Wall Street‘s projections, reducing losses at its streaming services and stabilizing subscriber growth.

During the interview, Iger stated that investing in gaming is a significant step considering the demographic changes and the media consumption habits of Gen Alpha, Gen Z, and even millennials.

YPulse, a market research organization that focuses on younger generations, found that Gen Z spends more time each week playing games on computers, smartphones, and consoles than watching TV or movies.

First published in 2017, Fortnite is an online multiplayer gaming franchise renowned for its chaotic combat, imaginative open environments, and humorous avatars. Online counters recorded millions of players at any given time, including a record 44.7 million players simultaneously in November, as its popularity exploded.