A recent report indicates that certain executives at Disney are exploring the possibility of acquiring Epic Games, the company behind the popular game Fortnite. This speculation arises despite Epic Games facing recent challenges, including significant layoffs.
Disney and Epic Games share a long-standing collaborative relationship. This partnership is evident through the integration of Disney characters into Fortnite and the use of Unreal Engine in Disney’s theme parks. In 2024, Disney further solidified this bond with a substantial $1.5 billion investment in Epic Games. This investment was specifically earmarked to foster collaboration on an “all-new games and entertainment universe,” aiming to broaden the reach of Disney’s renowned stories and interactive experiences.
According to tech reporter Alex Heath, who shared insights on “The Town” podcast, senior Disney executives are reportedly “waiting for the right moment” to pursue a potential acquisition of Epic Games. While Disney’s previous investment provided them with an equitable stake, Heath’s claim suggests a desire for outright ownership.
Epic Games recently made headlines due to mass layoffs, which saw 1,000 employees lose their jobs. The company attributed these cuts to a downturn in Fortnite engagement that began in 2025, stating they were “spending significantly more than we’re making” and needed “major cuts to keep the company funded.”
Heath noted an internal division within Disney regarding the acquisition, stating, “I know for a fact there are senior executives in Disney who want them to buy Epic and are just waiting for that moment… and then there are others who think it’s a bad idea.” Those cautious about the move might be considering the reported decline in Fortnite engagement, despite the game being widely regarded as Epic’s most valuable asset. Heath believes that if Epic Games were ever to cease being an independent entity, Disney would be its “most natural home.”
Prominent Disney figures have shown support for ventures in the gaming sector. Josh D’Amaro, Disney’s new CEO, strongly advocated for the company’s initial investment in Epic Games. Former executive Kevin Mayer also lauded the investment as a “great move” in an interview, encouraging D’Amaro to seek further growth opportunities in gaming, with an outright purchase of Epic Games potentially being a key strategy.
As of now, there have been no formal offers or public announcements regarding a merger between Epic Games and Disney. Epic Games remains a founder-controlled company, with CEO Tim Sweeney retaining full voting control.