The Walt Disney Company (DIS.US) and Epic Games said on Wednesday that Disney plans to acquire a stake in "Fortnite" maker Epic Games for $1.5 billion as part of a collaboration that includes Disney-owned digital properties such as "Star Wars," "Marvel" and "Avatar."
Fans will be able to watch, shop and play with Disney characters in Fortnite, according to a statement Wednesday. The deal will also include new games and partnerships with Disney theme parks.
"This marks Disney's largest-ever push into the world of gaming and represents a significant opportunity for Disney's growth and expansion," Disney CEO Bob Iger said in a press release.
Disney has had its share of ups and downs when it comes to video games. In 2016, the company shut down most of its gaming business due to difficulty developing successful large-scale games within the company. Disney now licenses its games to outside developers and publishers, such as Electronic Arts (EA.US) and Sony Group (SONY.US).
Disney and Epic have worked together for years, including through Disney's accelerator program, which mentors small businesses with company executives. In addition, Epic provides "Fortnite" players with characters based on "Star Wars," Marvel, and "Raiders of the Lost Ark," and Epic's Unreal Engine software has also been used to develop Disney games.
"Disney was one of the first companies to believe in the potential of blending their world with ours in Fortnite," Epic CEO Tim Sweeney said in a statement.
The companies said the new project will last several years. Epic will develop these experiences internally.
Epic has worked with other large consumer goods companies before this deal. In 2022, Kirkbi, the family holding company that controls the Lego Group, invested US$1 billion in Epic to use its brand to create online experiences. Lego Fortnite, which launched last year and features blocky Lego-style characters, had as many as 2 million people online shortly after its launch.