Rupert Murdoch will own just five per cent of an enlarged Disney under a deal to sell assets in 21st Century Fox to the company.
The planned $60bn (£44.7bn) sale is expected to be announced today, will mean Disney takes ownership of 21st Century Fox's assets including a 39 per cent stake in Sky in the UK, the 20th Century Fox film studio, and Fox TV.
The reported deal marks a major change in direction for the Murdochs.
Up until recently, Murdoch had been attempting to take full control of Sky, but was facing several obstacles and delays.
This bid could now be inherited by Disney, changing the competition considerations for the government.
Fox will retain ownership of Fox News, as well as its sports and business channels, while the separately-listed News Corp will continue under the ownership of Rupert and Lachlan Murdoch.
The next move of James Murdoch, who is chief executive of Fox, is not yet clear.
Announcing the deal today would wrap up a major week for Disney, with the release of Star Wars: The Last Jedi tomorrow expected to storm the box office.