Why Disney Is Selling Fox's Video Game Business
Disney (NYSE: DIS) plans to sell FoxNext, a video game unit it acquired as part of its takeover of 21st Century Fox's media assets earlier this year, according to Bloomberg. The unit, which was established two years ago, develops free-to-play mobile games based on various media properties.
FoxNext's most well-known game is Marvel Strike Force, which was launched last March and generated over $150 million in revenue in the first year. It's also developing new games based on the Avatar and Aliens franchises.
Several Disney executives, including direct-to-consumer chief Kevin Mayer, reportedly considered keeping FoxNext. However, CEO Bob Iger still concluded that it would be better to sell the unit. Let's discuss why Disney is selling FoxNext, and which companies might be potential suitors.
Source Fool.com
