Disney and Fubo have finalized a merger that unites two of the leading live TV streaming services in the United States. This strategic alliance combines Hulu + Live TV and Fubo, resulting in a platform that boasts access to over 55,000 live sporting events along with various entertainment offerings.
This merger creates the second-largest virtual pay-TV provider in the country, amassing nearly 6 million subscribers, second only to YouTube TV, which is reported to have about 10 million subscribers. This deal not only consolidates Disney’s footing in the competitive live streaming market but also enhances its capability to challenge its primary rival effectively.
David Gandler, co-founder and CEO of Fubo, expressed enthusiasm about the merger, stating that the union with Disney aims to create a more consumer-focused streaming platform, emphasizing innovation and value. This partnership is expected to foster a flexible streaming ecosystem, providing consumers with more options while simultaneously enhancing profitability and promoting sustainable growth.
Under the arrangement, Disney will maintain a 70% ownership stake in the newly formed entity, while Fubo shareholders will hold the remaining 30%. Interestingly, although there will be operational integrations, both Fubo and Hulu + Live TV will continue to operate as separate services, maintaining their individual apps and offerings. Hulu + Live TV will still be able to bundle with Disney+ and ESPN Unlimited, ensuring that consumers have the option for comprehensive streaming packages.
The merger anticipates significant operational efficiencies and cost savings through various means such as advertising optimization, flexible content packaging, and new marketing strategies. Fubo’s advertising team will merge into Disney’s larger sales organization, which is expected to enhance the overall advertising revenue potential of the new platform.
Leadership within the new organization highlights Disney’s influence, with Gandler remaining at the helm of the combined operations, while Andy Bird, a former chairman of Walt Disney International, takes on the role of chairman. Bird remarked on the importance of this merger, highlighting the combination of industry-leading brands and resources aimed at adapting to the changing needs of consumers.
Additionally, Disney’s commitment to supporting Fubo is evident with a $145 million term loan anticipated in 2026, thus reinforcing its financial involvement and foresight in the venture’s success.
This merger marks a significant shift in the live TV streaming landscape, promising enhanced services and options for viewers as the market continues to evolve.