Disney's Hulu + Live TV and Fubo have agreed to merge, creating one of the largest streaming pay TV providers in the United States.
The newly combined service will cater to a massive subscriber base of 6.2 million, positioning it as the second-largest streaming pay TV entity, trailing only YouTube TV.
Fubo's Management to Lead New Disney-Fubo Streaming Giant with $145 Million Loan
The agreement grants Disney a 70% ownership stake in Fubo, while Fubo's management team, led by co-founder and CEO David Gandler, will operate the merged company.
Gandler expressed optimism about the partnership, emphasizing its potential to offer consumers greater choice and flexibility in live TV streaming. "This combination allows us to scale effectively while enhancing our offerings," Gandler stated.
As part of the deal, Fubo will receive significant financial support. Disney has committed to a $145 million loan to be repaid by 2026, Newsweek said.
Additionally, the companies resolved a legal dispute that had previously stalled the launch of Venu Sports, a sports streaming platform co-developed by Disney, Fox Corp., and Warner Bros. Discovery (WBD).
Disney, Fox, and WBD agreed to pay Fubo $220 million as part of the settlement, paving the way for the Venu Sports service to move forward.
The merger also includes a new carriage agreement between Disney and Fubo, enabling the creation of a Sports & Broadcast service featuring popular Disney-owned networks. Subscribers can expect access to ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and ESPN+, further solidifying the new entity's position in the market.
Fubo Shares Soar After Disney Merger; Market Reacts to Venu Sports Settlement
Despite the merger, Hulu + Live TV and Fubo will continue to operate independently on their respective platforms.
According to CNN, Hulu + Live TV will remain accessible through the Hulu app and part of the Hulu, Disney+, and ESPN+ bundle. Fubo will retain its standalone app, maintaining its current branding and user experience.
The announcement comes after years of legal disputes between Fubo and the media giants over Venu Sports.
Initially slated for an August 2024 launch, Venu Sports plans to offer cord-cutters access to a wide array of live sports, including NFL, NBA, MLB, NHL, and more.
The service is expected to cost $42.99 per month, drawing from the sports content libraries of Disney, Fox, and WBD.
The market reacted swiftly to the news, with Fubo's shares surging over 200% and Disney's stock also experiencing a modest rise.
Analysts view the merger as a strategic win for both companies, combining Hulu + Live TV's established subscriber base with Fubo's sports-focused appeal. As the streaming landscape continues to evolve, the Disney-Fubo alliance signals a new era of competition and innovation in live TV streaming.
