Disney invests $1.5bn in Fortnite maker Epic Games to create new ‘universe'

Group 1: Disney's Strategic Moves - Disney has announced a $1.5 billion partnership with Epic Games to enter the video game market, aiming to create a "games and entertainment universe" for its franchises like Pixar, Marvel, and Star Wars [1][2] - Bob Iger, Disney's CEO, stated that this deal represents the company's "biggest entry ever into the world of games," highlighting significant growth opportunities [1][2] - The collaboration with Epic Games is expected to build a persistent, open, and interoperable ecosystem that connects the Disney and Fortnite communities [3] Group 2: Financial Performance - Disney reported a 49% increase in profits to $1.91 billion for the three months ending December 31, despite flat revenue of $23.5 billion [2] - The company is under pressure to cut costs and has announced a hefty dividend for shareholders, indicating a positive shift in financial performance [1][2] - Disney shares rose by 7% in after-hours trading following the earnings announcement and the news of the Epic Games deal [2] Group 3: Additional Ventures - Disney's ESPN is collaborating with Fox Corporation and Warner Bros Discovery to launch a sports-focused streaming platform, leveraging a wide range of sports rights [4]