Entertainment giant is going big on gaming with a massive $1.5 billion bet on Fortnite maker Epic Games.
Disney stock DIS rallied 12% on Thursday after investors scooped up the company’s shares following a solid earnings report. For the December quarter, the media heavyweight posted revenue of $23.5 billion and adjusted profits of $1.22 a share. Wall Street had been calling for $23.8 billion, and $1.01, respectively.
In other news, CEO Bob Iger thrusted the entertainment giant deeper into the gaming world. He announced Disney is investing $1.5 billion for a stake in Fortnite maker Epic Games. The partnership will seek to bang out new games in an “entertainment universe” where users can “play, watch, shop, and engage” with content and characters.For fiscal 2024, Disney projected $4.60 in profits per share, well ahead of Wall Street’s consensus view of $4.29. Recent cost-cutting efforts, the company said, are likely to amount to $7.5 billion in savings by the end of the year. Shares of Disney are up a hefty 22% on the year, but are still some 50% below the all-time high reached in 2021.