- Reports suggest that Disney is considering a full buyout of Epic Games and Fortnite.
- Former Disney executive Kevin Mayer revealed how new CEO Josh D’Amaro is looking for growth in the gaming sector.
- Tech reporters explained how Disney execs are waiting for the right moment to place a bid on Epic.
New reports are surfacing that Disney is weighing a full-scale buyout of Fortnite creator Epic Games. While Disney already holds a significant minority stake in Epic, if the reports materialise, players could see one of the most aggressive shifts in gaming history. Here’s everything we know about the Disney Epic Games buyout rumors.
Former Disney Exec Hints Epic Games Acquisition Deal Following Fortnite Disney Crossover
In a recent interview with CNBC, Kevin Mayer, a former Disney executive, revealed how the new Walt Disney Company CEO, Josh D’Amaro, will have to take on bold steps to boost Disney’s growth. Mayer then went on to discuss video games as a potential area for growth for Disney, highlighting Disney’s $1.5 billion investment as a “great move”.
Mayer went on to state: “I think Epic or some other video game asset would be a great addition to The Walt Disney Company’s asset base.” Josh D’Amaro, being a huge gaming fan and advocate for Disney’s growth in the sector, has already presented ideas like premiering Disney movies in Fortnite, along with being a major architect behind the previously mentioned $1.5 billion investment.
Additionally, tech journalist Alex Heath, on Matt Belloni’s The Town podcast, revealed how senior Disney executives are waiting on the right opportunity to place a bid on Epic Games. However, not all Disney execs believe that this would be the right move for the company.
While touching on the recent layoffs, if Epic is possibly shutting down, Heath explained that Disney would largely remain unaffected. Heath also went on to state: “I think if Epic ever sold, if it ever decided to call it quits on being an independent company, Disney would be the most natural home for it for a lot of reasons.“
He then went on to explain how a buyout would “pay for itself when it’s announced,” highlighting how many executives might see it as a worthy challenger for the Roblox ecosystem. Citing possibilities like a Disney Fortnite theme park, Alex Heath believes that if “they did the integration well, and integrated Fortnite into the Disney universe and not only the other way around,” it could be a huge move for the entertainment sector as a whole.
These buyout rumors don’t come as a surprise, especially with Epic Games recently laying off over 1,000 employees and cutting $500 million in costs. However, Heath also revealed how, since Epic Games is an independent, founder-controlled company, CEO Tim Sweeney holds full voting stock power.
Sweeney’s control over decisions related to Epic Games might be one of the reasons why Disney does not want to aggressively pursue a potential buyout. As Sweeney has always been a vocal advocate against the “walled gardens” culture, Disney buying Epic out would not sit well with his corporate philosophy.
Alex also pointed out how, beyond Fortnite, Disney already heavily relies on Epic’s proprietary Unreal Engine for many of its projects. This includes not only The Mandalorian’s Stagecraft technology but also titles like Star Wars Jedi Survivor. If they end up owning Epic and, in turn, Unreal Engine, it could drastically reduce long-term production costs.
What do you think about this potential buyout? Do you think Disney should go through with it? Tell us in the comments below!
