Fusion launched in 2013 as a joint venture between Disney and Latino-focused media company Univision. It was initially intended to appeal to a young Hispanic audience, but quickly broadened to include millennials of all ethnicities.
According to multiple media reports, Disney is considering transferring full ownership of its Fusion stake to Univision for an unknown price.
Fusion has invested heavily in digital, launching content on Snapchat Discover along with the likes of CNN and BuzzFeed.
But despite this and big journalistic hires like US news anchor Jorge Ramos, Fusion has struggled to gain traction with a demographic that prefers watching Netflix on laptops to forking out for an expensive cable package.
Fusion also isn't carried by major distributors like Comcast and Time Warner.
Meanwhile, Disney will maintain its millennial focus with its 10% stake in Vice Media, plus the ABC Family cable network, which it plans to rebrand Freeform next year. The entertainment brand also owns Maker Studios, a YouTube multi-channel network.
The company is also dabbling with online streaming, launching the £9.99 DisneyLife service in the UK last month.
More expensive than Netflix or Amazon Prime, the service pools Disney's books, films, games and music on mobile.