DIS - The 9-Letter Word Disney Doesn't Want to Mention but Could Be a Big Part of its Future Growth
2024-02-29 10:00:00 ET
Walt Disney (NYSE: DIS) has been struggling to generate revenue growth. It has been looking at a lot of different ways to potentially unlock value for investors and to help its slumping stock rally. Recently, it announced a deal which could set its sights on gaming, and a segment that investors may have thought Disney gave up on: the metaverse.
On Feb. 7, Disney announced that it would be working with Epic Games to create new games as well as an "entertainment universe" that will expand experiences for its customers. It's going to invest $1.5 billion into Epic Games, the maker of Fortnite , to help grow this project. In addition to offering games, this new universe will also allow consumers to shop and to engage with content and characters.
What it sounds like is the metaverse, part two. Back in 2021, then-CEO Bob Chapek talked about creating a "Disney Metaverse" which would bring physical and digital worlds together. "Metaverse" was the big buzzword of 2021, when Facebook changed its name to Meta Platforms and went on to spend billions of dollars for its Reality Labs division.
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The 9-Letter Word Disney Doesn't Want to Mention but Could Be a Big Part of its Future Growth