Walt Disney Company and FuboTV have announced a major merger deal, combining Disney’s Hulu + Live TV service with FuboTV. Under the agreement, Disney will hold a 70% stake in the new venture, while the operations will continue under the publicly traded Fubo, led by its current management team, including CEO David Gandler.
This collaboration is poised to leverage the strengths of both platforms, bringing together a total of 6.2 million subscribers across North America. Fubo is expected to introduce a new sports and broadcasting service that incorporates Disney’s portfolio, including networks like ABC, SECN, ACCN, and various ESPN properties. Although the specifics of the launch date and pricing were not disclosed, both Hulu + Live TV and Fubo will continue to be offered as separate services.
Financial terms of the merger remain largely undisclosed, but it does include the settlement of all litigation between Fubo and Disney related to a previous streaming initiative known as Venu Sports, which was set to launch in 2024. Following a federal judge’s ruling on antitrust grounds, this launch has faced delays, prompting Disney, Fox, and Warner Bros. to pursue an appeal.
In addition to the merger, Disney will provide Fubo with a $145 million loan due in 2026, alongside a $220 million cash sum to settle litigation. The deal also includes a termination fee of $130 million, ensuring commitments are met even if regulatory approvals are not obtained. However, no specific timeline has been provided for when the merger will finalize.
After the announcement, Disney’s stock experienced a slight decline despite a brief gain earlier in the day, while Fubo’s stock surged by over 251%, reaching its highest point since September 2022.
This merger represents an encouraging development in the evolving landscape of streaming services, indicating a trend towards consolidation that can ultimately enhance service offerings and subscriber benefits.
Summary: Disney and FuboTV are merging operations, with Disney owning 70% of the combined company while Fubo continues to operate as a publicly traded entity. This deal brings together 6.2 million subscribers and holds promise for an enhanced sports broadcasting service. Financial details are still under wraps, but both companies are set to continue their current offerings separately as they navigate regulatory approvals.