Nearly a decade after a tumultuous breakup, Fox and News Corp. are considering a merger that could see the combined entity tap into the competitive sports betting market.
Owned by Rupert Murdoch, the two entities split in 2013 following a phone-hacking scandal in the U.K. which exposed Fox and News Corp. to legal and financial risks. A restructure was also put in place as News Corp.’s extensive portfolio of newspapers struggled to remain profitable in the embattled print industry.
- No deal is imminent, but Fox and News Corp. have established committees to explore the potential merger.
- Merging the companies would allow for streamlined content across news and sports.
- Costs saved from the merger could be invested in sports betting.
Fox has already established a footprint in a U.S. sports betting market that saw more than $52.7 billion wagered throughout 2021, per data intelligence agency Morning Consult.
In 2019, Fox partnered with FanDuel owner Flutter Entertainment after the latter bought The Stars Group, the online gambling company that created Fox Bet, for $6 billion.
Fox Bet has failed to gain traction in the U.S. betting market due to its poor reach and tech.
The failure to expand has caused a rift between Fox and Flutter over Fox Bet’s option to purchase 18.6% of FanDuel at an $11.2 billion valuation.