With DisneyNew CEO Josh D'AmaroSince taking office, this entertainment empire's ambitions in the video game market seem to be brewing an unprecedented explosion. Kevin Mayer, a former executive at Disney and TikTok and now head of media company Candle Media, recently publicly called for Disney to directly acquire Epic Games, the developer of Fortnite, if it wants to seek explosive growth and boost its stock price, which would be the "perfect solution." Furthermore, a tech journalist revealed that Disney's top management has indeed listed Epic Games as a potential acquisition target and is currently waiting for the best time to make a move.
A former executive has called the acquisition of Epic Games a "bold move" to drive growth.
New CEO Josh D'Amaro has never hidden his passion for and emphasis on the video game industry. He previously pushed for Disney's $15 billion strategic investment in Epic Games, a move that has been highly praised in the industry.
But in Kevin Mayer's eyes, it was clearly still not enough.Interview with CNBCAt the time, Kevin Mayer stated that Josh D'Amaro must take "bold steps" to truly transform the gaming business into a core growth engine for Disney's future.
Kevin Mayer believes that instead of merely engaging in project collaborations or financial investments, directly incorporating Epic Games or other large gaming assets into Disney's portfolio is the best strategy to expand its asset base. With fierce competition in the traditional film and streaming markets, the gaming market is seen as the most promising blue ocean for Disney to monetize its vast IP portfolio (such as Marvel, Star Wars, and Pixar).
Insider leak: Senior management does have this intention, but faces uncertainty regarding the "founder".
In response to Kevin Mayer's statement, The Verg correspondent Alex Heath, in an interview hosted by Matt Belloni, stated...The Podcast "The Town"The report reveals that senior executives at Disney are indeed eager to acquire Epic Games and are quietly waiting for the right opportunity to make a move.
"If Epic Games ever decides to sell or abandon its status as an independent company, Disney would be the most natural destination for it for various reasons," said Alex Heath.
However, this acquisition still faces several major obstacles:
• Internal disagreements:There is no consensus within Disney; some senior executives remain skeptical about acquiring the massive game developer, viewing it as a risky move.
• Tim Sweeney's absolute control:Epic Games is a company with absolute control by its founder. CEO Tim Sweeney holds complete voting control, meaning that any acquisition must be approved by him unilaterally, and external capital or the board of directors has virtually no power to pressure him.
From Licensing to Original Production: Disney's Expanding Gaming Ambitions
Looking back, Disney's strategy in the gaming industry has been inconsistent. They once had their own game development team, Disney Interactive Studios, but it ultimately closed in 2016 after the development of the Disney Infinity series was abruptly cancelled. Since then, Disney has shifted to a "pure IP licensing" model in the gaming market, such as licensing EA to develop Star Wars games and licensing Insomniac Games to develop Marvel's Wolverine.
But Disney's idea of "buying the gaming giant" has never stopped:
• Missed out on EA, locked in on Epic Games:In 2023, it was reported that Disney intended to acquire EA (Electronic Arts), but the deal ultimately fell through (EA was later acquired by Saudi Arabia's Public Investment Fund, PIF, for a staggering $550 billion).
• Deep integration with the Epic Games ecosystem:The collaboration between the two parties is accelerating and deepening. Just on May 1st of this year, Epic Games provided a dedicated creation tool for Fortnite, Unreal Editor (Unreal Editor for Fortnite, UEFN), which will officially add a large amount of officially licensed Star Wars content from Disney (including classic scenes, weapons, and voices), allowing creators around the world to freely create Star Wars-themed games.
Analysis of viewpoints
Was acquiring Epic Games an unrealistic decision for Disney, or a necessary marketing strategy?
From a business perspective, this is a flawless complementarity. Disney's biggest pain point is that while they possess the world's most valuable stories and characters, they lack an underlying platform that can transform these IP assets into "highly engaging digital social experiences."
Epic Games' Fortnite is essentially a "digital Disneyland," and its Unreal Engine is the underlying technology that dominates global film and television special effects and game development. Acquiring it would give Disney an advantage in the future metaverse and next-generation entertainment.
However, Epic Games recently went through a painful period of layoffs, laying off thousands of employees (but still maintaining a workforce of over 4000 developers). Its founder and CEO, Tim Sweeney, is known for his opposition to tech giants like Apple and Google and his insistence on independence. To persuade this idealistic founder to sell his life's work to a traditional entertainment empire, Josh D'Amaro will need not only a staggering sum that could rival or even surpass the acquisition of 21st Century Fox, but also a compelling vision to convince Tim Sweeney.
