Disney's Interest In Fox Is All About Streaming

Disney (NYSE: DIS) is working on a couple of direct-to-consumer streaming products for ESPN and its film studios. Adding in the assets of Twenty-First Century Fox's (NASDAQ: FOXA) film and television properties could provide a nice boost to both services, enabling them to gain significant traction. That may be a large reason why Disney is reportedly in talks to acquire most of Fox's assets.

Additionally, buying most of Fox's assets would give Disney majority ownership of Hulu, one of the leading streaming services in the United States. Disney and Fox currently each own 30% stakes in the company. The acquisition would give Disney the right to exercise more control over the service, potentially leveraging the platform to support its ESPN and Disney-branded streaming services.

Image source: ESPN.

Source: Fool.com