Fox Sports Studios’ video production arm has been in trouble for months, as its finances have been in a state of disarray.
The company is currently facing a $50 million bankruptcy filing, and Fox Sports has said that it would be closing down its studio, which was set up in 2011, as part of a plan to overhaul its operations.
According to The Hollywood Reporter, the studio is now in talks with other entertainment and media companies for a possible spinoff.
Fox Sports has already been accused of being a corporate shill for its ESPN parent, Disney, and has been the target of lawsuits by its own employees.
At one point, the company faced a $4.5 million fine from the SEC after failing to properly pay its interns, and it has been facing lawsuits over its use of an internship program.
The company has also been accused by a group of former employees of bullying and intimidation, and the company has been under investigation by the DOJ for allegedly making false claims about its internship program, and falsifying student loan records.
Last month, the DOJ filed a lawsuit against Fox Sports and the college athletic conference, alleging that the company discriminated against minority students in order to maximize its earnings.
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