[Disney’s Hulu + Live TV service and Fubo will merge, creating one of the country’s largest pay TV providers. Under the agreement, Disney will own 70% of Fubo while the current management team will operate the combined entities, led by Fubo co-founder and CEO David Gandler. The combined streaming cable service will have 6.2 million subscribers, making it the second largest, behind only YouTube TV.
As part of the deal, Fubo will drop its lawsuit against Venu Sports, the streaming joint venture between Disney, Fox Corp, and Warner Bros. Discovery, which would have blocked the launch of the long-delayed service. The companies will pay Fubo $220 million, and Disney will provide a $145 million loan to Fubo through 2026.
“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” said Gandler. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility.”
Shares of Fubo soared over 200% on the news. The deal does not include the Hulu subscription service and will see Disney ink a new carriage deal with Fubo, allowing the company to create a new Sports & Broadcast service featuring Disney’s sports and broadcast networks.
Under the deal, Fubo and Hulu + Live TV will remain available to subscribers via their respective platforms, with Hulu + Live TV available on the Hulu app and remaining part of the Hulu, Disney+, and ESPN+ bundle. Fubo will retain its app. The combined service will feature Disney’s sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and ESPN+, as well as ESPN+.
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