Walt Disney to invest $1.5 billion stake in Epic Games

The Walt Disney Company said it will invest $1.5 billion to acquire an equity stake in video game developer Epic Games, in addition to a multiyear project.

The mass media and entertainment conglomerate said it will collaborate with Epic Games on an "all-new games and entertainment universe that will further expand the reach of beloved Disney stories and experiences," according to a statement Wednesday.

It said consumers will be able to play, watch, shop and engage with content and characters from Disney, Pixar, Marvel, Star Wars, Avatar; in addition to creating their own stories and experiences.

The tasks will be powered by Unreal Engine -- the 3D computer graphics game engine developed by Epic Games.

"This marks Disney's biggest entry ever into the world of games and offers significant opportunities for growth and expansion," Disney CEO Robert A. Iger said in the statement.

Epic Games CEO and Founder Tim Sweeney said the collaboration will bring together the Disney and Fortnite communities.