Shares of 21st Century Fox and Disney were higher Tuesday after CNBC reported Monday, citing sources, that Fox has been in talks to sell most of the company to Disney.
CNBC reported Tuesday that Disney approached 21st Century Fox on the deal.
Officials at Disney and Fox declined to comment.
Fox has "a fantastic slate, but looks like the slate that Disney would want to have. So, I do think this deal makes so much sense," Cramer said on "Squawk on the Street." "I can't believe they don't take it to the finish line."
TV content that Disney would want include Fox's long-running sitcom "The Simpsons" as well as the popular comedy "Family Guy," Cramer said.
"Why has Fox not levered 'Simpsons' far more than it has?" the host of CNBC's "Mad Money asked. "I think the answer is because they don't really have a place to put it. But Disney does."
Disney also would be interested in capitalizing on Fox's movie franchise, Cramer said. Additionally, a deal could represent a threat to Netflix's dominance, he said.
"If you get Hulu, which is a household name, suddenly you have something that looks like Netflix," Cramer said.
Fox and Disney are among the co-owners of Hulu.
Last year, analysts were talking about "stopping Amazon," Cramer added. "This year I keep hearing Netflix. This is the way to stop Netflix."
Disclosure: Comcast, which owns CNBC parent NBCUniversal, is a co-owner of Hulu.