[HN Gopher] Disney to take $1.5B stake in Epic Games
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       Disney to take $1.5B stake in Epic Games
        
       Author : sp3n
       Score  : 64 points
       Date   : 2024-02-07 21:54 UTC (1 hours ago)
        
 (HTM) web link (www.cnbc.com)
 (TXT) w3m dump (www.cnbc.com)
        
       | mminer237 wrote:
       | This is like a 3-4% stake then?
        
       | haunter wrote:
       | Epic does what Facebook couldn't. The Metaverse is real
       | 
       | I bet Zuck never ever played an actual video game in his whole
       | life
       | https://compote.slate.com/images/760b74a3-7156-4dbe-90bd-b02...
        
         | brucethemoose2 wrote:
         | Also, game dev is hard. Engine dev is really hard.
         | 
         | There is a growing graveyard of games/devs suffering from
         | bespoke engine woes instead of just using Unreal...
        
           | GuestHNUser wrote:
           | > There is a growing graveyard of games/devs suffering from
           | bespoke engine woes instead of just using Unreal...
           | 
           | Is there? I can't think of any examples that come to mind.
           | Most indie devs I know that roll their own engine have no
           | regrets. I am curious who comes to mind that says otherwise
           | publicly?
        
         | Animats wrote:
         | Epic never did the metaverse. Sweeney talked about doing it,
         | but they never shipped. Unreal Engine heavily preprocesses
         | content in Unreal Editor, then trusts that content. For a
         | metaverse, you need to do more of that server-side. Back when
         | Sweeney was talking that up, I was expecting metaverse-in-a-box
         | in Unreal Engine 7. That seems less and less likely.
         | 
         | The metaverse is real, and it's called Second Life. Which is a
         | niche. It is a _profitable_ niche. A  "cash machine", one of
         | the owners has said. So it stays around. Everybody else in the
         | metaverse space lost money. Now that zero interest rates are
         | over, and there's no more free money, this is even more true.
         | Heavy Disney investment in a general-purpose metaverse seems
         | unlikely. It doesn't fit their IP-based business model.
        
       | Animats wrote:
       | Wow! What will Disney do to Unreal Engine's pricing plan? Does
       | Sweeney remain in charge?
        
         | Solvency wrote:
         | This will be a boon for Fortnite's licensed character business,
         | Disney's merchandising business, Disney+'s content, and
         | absolute downgrade/extortion for all Unreal users. Guaranteed.
        
       | berserk1010 wrote:
       | I wonder if Tencent still owns 40% of epic games, or did they
       | sell some of that equity to Disney. Either way Tencent probably
       | still got diluted, and Tim Sweeney should still have majority
       | control
        
       | vineyardmike wrote:
       | Epic games has the potential to be the virtual Disney World -
       | just available to everyone on the planet instead of those with
       | enough money to visit a park IRL. Disney has a great flywheel
       | where their IP drives content, toys, and experiences. This is
       | just the latest experience, and it's something they can't build
       | themselves.
       | 
       | I bet you can expect more content on fortnite to be with Disney
       | IP; skins, events, maps, everything. It'll be a great way to
       | promote new movies/TV shows with cross-platform events. Fortnite
       | has already had great luck with this sort of thing, so it makes
       | sense for Disney to want access to it. Maybe you'll even see IRL
       | Fortnite experiences in theme parks or a Fortnite IP based movie
       | or TV show.
        
         | tapoxi wrote:
         | Disney has had access to it, there were a lot of Fortnite
         | Avengers promotions. It obviously worked well enough for them
         | to want to invest.
        
       | chr-s wrote:
       | Disney use Unreal Engine for their dynamic greenscreen LED wall
       | which they film The Mandalorian and others against. That's got to
       | be at least as important as Fortnite characters.
        
         | tracerbulletx wrote:
         | Maybe but they've been wanting to get in to gaming for a while
         | now, so this is probably mostly about that.
        
         | MikusR wrote:
         | Only for the first season. They switched to their own stuff
         | later. IIRC.
        
       | j2bax wrote:
       | I wonder if Apple has any regrets about its battle with Epic...
       | Seems like they could have been a great launch partner for the
       | Vision Pro...
        
         | al_borland wrote:
         | They aren't the only game studio. If Apple rolled over on Epic,
         | it would lead to their entire revenue model around the App
         | Store falling apart.
        
         | staplers wrote:
         | Apple, while being a hardware and (somewhat) software leader,
         | has been in "let them eat cake" mode for quite some time.
        
       | jprd wrote:
       | I think I'm going to need one of those Carrie Matheson / Pepe
       | Silva full wall mind-maps to track all of this.
        
       | bigiain wrote:
       | So is there a term like "acquihire" - except it means more like
       | "we sold a stake in out company so we would get access to their
       | legal department" instead of "we sold a stake in out company so
       | we would get cushy jobs"?
        
         | BadHumans wrote:
         | Who needs whose legal department and why?
        
           | iamtheworstdev wrote:
           | Epic vs Apple just became Disney vs Apple
        
       | gigatexal wrote:
       | Hilarious. A long time ally of Apple will invest in a company
       | hell bent (and somewhat righteously so) knee capping Apple.
        
         | paxys wrote:
         | There are no friends in business. It is very common for large
         | companies to be in close partnerships while also competing with
         | or even suing each other.
        
         | brokencode wrote:
         | Ally of Apple in what way? Do they give each other favorable
         | deals or work closely together on any important projects? I
         | haven't heard of anything major along those lines.
         | 
         | I think an appearance of friendliness mainly came from Steve
         | Jobs, and he's been gone for a long time now.
        
       | BooneJS wrote:
       | Disney is diversifying. This comes on the heels of their
       | subsidiary ESPN creating a new sports streaming service with Fox
       | and Warner/Discovery (https://thewaltdisneycompany.com/espn-fox-
       | warner-bros-discov...)
        
       | paxys wrote:
       | Will be interesting to see what % stake Disney got. Tencent
       | currently owns ~40% of Epic and Sony has another ~5%, and given
       | their last valuation of $32B it doesn't seem like Disney will end
       | up with more than 3-4%. Still a good chunk, but not quite enough
       | to call the shots.
        
         | echelon wrote:
         | It's enough to start pivoting into this area. They can gain
         | exposure and increase their stake over time.
        
       | bangonkeyboard wrote:
       | What's surprising to me is that this deal is apparently about
       | content and IP, not the Unreal Engine technology per se.
        
       | wyldfire wrote:
       | Aounds like horizontal integration.
        
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