Disney and Univision are in talks for the conglomerate to exit Fusion by the year’s end, according to a new report. The Wall Street Journal said today that one recourse could be Univision buying out Disney’s stake in their millennial-focused 50-50 joint venture.
Launched in October 2013, the cable and digital network originally specialized in news and lifestyle programming targeting young English-speaking Hispanics in the U.S. The idea was to give Disney’s ABC News more access to that demo group. But Fusion has struggled to find its financial footing as its focus expanded to all millennials. The venture lost $35 million last year, with $63.4 million in operating expenses more than eating up $28.1 million in revenues.
Last month, Univision promoted Fusion CEO Isaac Lee to the newly created role of Chief News and Digital Officer. He kept his Fusion title, as well as his gig as president of News and Digital at Univision Communications, while adding oversight of Multicultural — which includes El Rey, Flama and The Root.
Ross A. Lincoln contributed to this report.