Disney has finalized its acquisition of a majority stake in Fubo, paving the way for the formation of the sixth-largest pay-TV operator in the United States when paired with Hulu + Live TV. This merger will result in a combined total of nearly 6 million subscribers across North America, with both services continuing to operate under their individual brand identities. This strategic move positions Disney as a more formidable competitor to YouTube TV, which recently reported a surge in subscribers, having recently approached the 10 million mark, largely driven by bundled offerings like the NFL Sunday Ticket.
The acquisition comes against a backdrop of ongoing tension between Disney and YouTube TV, particularly as a carriage dispute looms. As their current contract nears expiration, there is a risk of a potential blackout of channels such as ABC and ESPN during critical programming times, including the NFL season and popular shows like Dancing with the Stars.
This merger is also the result of a resolution to Fubo’s 2024 antitrust lawsuit against Disney, Fox Corp., and Warner Bros. Discovery, stemming from issues related to the failed Venu Sports joint venture. The attempted launch of this sports streaming platform was halted following a ruling that highlighted monopolistic behavior amongst its partners, which had negatively impacted Fubo.
The new entity will see Disney controlling 70% of the merged organization, while Fubo’s current management, led by co-founder and CEO David Gandler, will continue to oversee operations for both Fubo and Hulu + Live TV. The collaboration promises to deliver cost efficiencies through innovative programming packages and optimized advertising strategies. Additionally, Disney has committed to providing a $145 million term loan to support Fubo.
Andy Bird, the new chairman of the board, expressed his enthusiasm about the transformative potential of the merger, emphasizing the shared resources and brand strength that will cater to the evolving demands of consumers. Media veteran Edgar Bronfman Jr. had previously held the chairmanship at Fubo before the acquisition.
Founded in 2015, Fubo was originally focused on delivering sports content, particularly soccer. Gandler articulated his optimism for the future, stating that the partnership will create a more flexible streaming ecosystem that not only enhances viewer choice but also aims to drive profitability and growth. The market has responded positively, with Fubo shares soaring by another 20% in pre-market trading in reaction to the completion of the acquisition, following an impressive tripling in value throughout 2025.
This collaboration between two industry giants is set to reshape the live streaming landscape, providing a promising outlook for consumers and shareholders alike in an increasingly competitive market.