The firms plan to create a huge and open games and entertainment world. They would call it a metaverse if the words weren't overused and hated.  

Disney boss Bob Iger announced the investment in a chat with CNBC. The firms will collaborate on a new games and entertainment world that will spread the love of Disney stories and experiences. Epic Games will build this long-term project.

"It's not just our parks where we're making new ways for customers to enjoy the characters and brands they love," Iger said in a call with analysts. In our new partnership with Epic Games, we're making a game-changing games and entertainment world that mixes Disney's top-notch storytelling with Epic's smash hit Fortnite, letting customers play, watch, create, and shop for digital and physical stuff.

This marks Disney's biggest move ever into the world of video games and offers huge chances for growth and expansion. The new immersive world will let them use their imagination and experience the Disney stories they love in amazing new ways."

Iger added, "Younger customers are big fans of video games. In fact, among millennials, Gen Z and Gen Z spend a lot of time on screen-based platforms and playing video games. This new world from Disney and Epic gives us a great chance to reach more customers where they are and to let more people connect with Disney's famous brands, including Marvel, Star Wars, and much more."

The €1.3 billion deal is subject to the usual conditions, including the green light from regulators. As well as being a world-class game experience and working with Fortnite, the new-lasting world will offer loads of ways for customers to play, watch, shop and join in with content, characters and stories from Disney, Pixar, Marvel, Star Wars, Avatar and more.