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Disney Invests $1.5 Billion in Epic Games

Feb, 08, 2024 Hi-network.com

Walt Disney Co. announced a$1.5 billion investment to acquire an equity stake in Epic Games, with the goal of collaboratively creating a metaverse/virtual universe of gaming and entertainment. Disney CEO Bob Iger stated that this marks Disney's most significant entry into the world of video games. The partnership is awaiting regulatory approval.

The collaboration between the two companies aims to bring together iconic characters from Disney's major franchises within a virtual gaming and entertainment realm. The two companies have previously collaborated on content for the video game Fortnite, which has attracted around 15.3 million regular monthly players.

Epic Games' founder and CEO, Tim Sweeney, said in a statement related to Disney's investment that the companies are working on something entirely new for the market. They strive to build a lasting, open, and interoperable ecosystem that connects communities around Disney and Fortnite.

Why is this important?

While the concept of the metaverse gained momentum with Meta's significant investment in virtual reality development, it has struggled to fully materialize. Despite considerable hype and investment, experts attribute the slow progress to affordability and a lack of technology supporting the concept, making it less appealing to the masses. Disney's investment holds significance as it has the potential to breathe new life into the metaverse concept, reigniting interest among ordinary users.

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