The Disney-ABC Television Group has dumped its stake in the young news organization Fusion that was aimed at courting the 16-25 demographic, but instead became known for running controversial stories dealing with the “totally joyful experience” of abortion, and how the world might be saved now that Justice Antonin Scalia is dead.
Another problem for Disney, which might have been related to Fusion’s content, was the tens of millions of dollars it was losing.
As a result, Disney left Univision Communications to manage the future of Fusion, which lost $37.6 million in 2015. Disney sold its 50 percent stake in the news group Fusion back to Univision after a nearly three-year long joint venture, the Los Angeles Times reported Thursday.
Fusion, which has a presence on TV and the Internet, took on a particular political voice that reportedly made Disney’s brass uncomfortable, the Times reported, citing sources familiar with the situation.
When Fusion first came together, Disney hoped to appeal to a younger, bilingual Latino audience. But just before launch, Univision re-positioned the group so that it would appeal to all ethnic groups, leaving Disney frustrated. Univision’s sudden change in direction meant that its partner was now connected to two identical properties.
Fusion has struggled since to “find, let alone measure, its audience,” the Washington Examiner reported last year.
After a re-launch in February 2015, Fusion underwent several realignments and layoffs. Shows were canceled, and Jorge Ramos, a well-known anchorman, saw his “America” show on Fusion scaled back from nightly to weekly in early 2014.
Several additional offerings from the fledgling news organization, including a show whose election night coverage included puppets, have left industry insiders scratching their heads.
Along the way, Fusion managed to lose millions of dollars for both Univision and ABC, according to the Times.
“Last summer, Univision acknowledged that Fusion and another start-up TV channel called El Rey, lost $85.2 million in 2014, according to regulatory filings,” it reported. On its own, Fusion represented a loss of $35 million for its parent companies.
Univision, the largest Spanish-language network in the United States, plans to realign its properties, which include the Root, the Onion and now all of Fusion, into a “multi-platform destination for the new, rising American mainstream,” the Times added, citing a statement from Univision.
Along with taking over editorial control, Univision will also be in charge of sales and distribution for the young news group.
