Disney reportedly wants to acquire Fortnite and Epic Games, as layoffs hit publisher

Disney has struggled to establish itself as a successful gaming developer and publisher. Still, with Fortnite vulnerabilities contributing to the Epic Games layoffs, it may see a growth opportunity. In a recent podcast, tech journalist Alex Heath revealed Disney leadership's interest in acquiring Tim Sweeney’s company.

How likely is an Epic Games buyout?

Not all the decision-makers hold the same opinion. Even so, joining Matthew Belloni's The Town, Heath said:

Senior executives at Disney want to buy Epic Games and are waiting for the right moment, while other executives at Disney believe it would be a bad idea.

Disney’s relationship with the Fortnite publisher began with a 1.5 billion investment in 2024. Fortnite skins celebrating Star Wars and Marvel movies and TV shows already appear in the shooter. The more ambitious goal is to develop a persistent world within the game comparable to Roblox. A younger audience would access various interactive and social experiences, as well as virtual shops.

Even if the collaboration is a success, CEO Josh D’Amaro’s company would remain only a partner. As Heath notes, buying out Epic Games could yield a much larger boost to his stock and profits. He explained:

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.

Unfortunately, as a private enterprise, the move would require Sweeney’s approval. That seems unlikely unless the founder departs to pursue other ventures.

The risks of challenging gaming industry giants

Disney also has a troubled history in the gaming world. Numerous failed projects led to the closure of studios. While Star Wars Jedi is one of several lucrative gaming franchises based on its movies, third parties develop the titles. An EA buyout was rumored in the past, but no deal materialized.

Despite the obstacles, D’Amaro is undoubtedly closely monitoring the recent Epic Games layoffs. In addition to over 1,000 employees now out of work, Fortnite modes like Ballistic are shutting down. At the very least, it may welcome a greater financial commitment from Disney to offset losses.