Disney Shuts Down Epic Games Buyout Rumors

Disney exec Dana Walden says a full acquisition of Epic Games isn't happening right now, but the partnership is strong and more is coming.

Ever heard a rumor so juicy you just had to know if it was true? The one about Disney buying Epic Games and Fortnite has been making the rounds, and now a Disney boss has finally addressed it head-on.

Speaking at Bloomberg's Screentime event this week, Disney executive Dana Walden set the record straight. "Those are not the conversations we're having right now," she said. "But we have a great partnership." That's a pretty clear no for now, but it also leaves the door slightly open, doesn't it?

Disney already dropped more than $1.5 billion into Epic for an equity stake, so they're definitely not just casual acquaintances. And they're working together on "transformational" new games. You've already seen some of that in Fortnite, like the recent integration at Disney's real-world parks. Walden teased that even more is on the way: "A number of launches coming up over the next two years ... are going to demonstrate the value of this partnership."

But not everyone at Disney is ready to shut down the acquisition talk. Kevin Mayer, a former Disney and TikTok exec who now runs Candle Media, said Disney's new CEO, Josh D'Amaro, will need to take "bold steps" to boost profits and the stock price. One option? Buying Epic Games or another studio. And tech reporter Alex Heath said on The Town podcast that he knows "for a fact" some senior Disney execs want to buy Epic and are just waiting for the right moment. Others, though, think it's a bad idea.

Why the hesitation? Epic is founder-controlled, with CEO Tim Sweeney holding full voting stock control. He can make unilateral decisions about Epic's future, so any buyout would require his blessing. Disney has kicked the tires before: in 2023, it was reportedly interested in buying Electronic Arts, but nothing came of it, and EA has since been sold to Saudi Arabia's PIF.

Beyond the investment, Disney already uses Epic's Unreal Engine for shows like The Mandalorian to project scenes onto LED screens around the set. D'Amaro is a big believer in video games and wants to do more in gaming. Wall Street is hungry for a catalyst to lift Disney's stock, which is actually lower today than it was a decade ago despite a COVID spike. D'Amaro has floated ideas like letting players book Disney cruises or watch Disney movies inside Fortnite. It's a big push, but just one piece—Disney has nine gaming franchises that have each earned over $1 billion.

So, will Disney ever pull the trigger on Epic? Only time will tell. What do you think—should Disney go all-in, or is the partnership enough?