Disney's Epic deal shows sharp cut in Fortnite maker's valuation -The Information
Reuters
Published Feb 08, 2024 05:44PM ET
(Reuters) - Walt Disney (NYSE:DIS)'s investment in Epic Games values the gaming company at $22.5 billion, a steep drop from what the company was valued two years ago, The Information reported on Thursday, citing a person familiar with the matter.
The $1.5 billion investment by Disney, disclosed during its post-earnings call on Wednesday, will give the entertainment giant a 9% stake in Epic Games, according to the report.
The price Disney paid is roughly in line with where mutual funds such as Fidelity, T. Rowe Price and Blackrock (NYSE:BLK) have marked their stakes in Epic Games recently, the report added.
Privately held Epic Games, maker of the popular title "Fortnite", was valued at $31.5 billion when it raised funding from Sony (NYSE:SONY) Group Corp and the family-owned holding company behind the Lego Group in April 2022.
The Disney-Epic deal will allow the two companies to create a "huge Disney universe" where consumers will interact with characters and stories from Disney, Pixar, Marvel, Star Wars and Avatar.
"This marks Disney's biggest entry ever into the world of games and offers significant opportunities for growth and expansion," CEO Bob Iger had said.
Disney and Epic Games did not immediately respond to Reuters' requests for comment.
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Written By: Reuters
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