Streaming Giants Unite: Disney and FuboTV Merge Hulu + Live TV
In a move that’s set to shake up the digital pay-TV landscape, Walt Disney Co. has agreed to merge its Hulu + Live TV streaming service with FuboTV Inc., a leading online sports-focused company. This strategic partnership will create the second-largest digital pay-TV provider, boasting a combined 6.2 million subscribers in North America.
A New Era of Choice and Flexibility
Under the terms of the deal, Disney will fold Hulu + Live TV into Fubo, with Disney owning 70% of the new venture and Fubo holding the remaining 30%. The TV venture will continue to operate under two brands: Fubo and Hulu + Live TV. Fubo co-founder and CEO David Gandler will lead the newly combined business, promising to deliver greater choice and flexibility to consumers.
A Win-Win for All Parties
The merger is expected to drive growth, strengthen Fubo’s balance sheet, and position the company for positive cash flow. Shares of Fubo skyrocketed on Monday, more than tripling to $4.99, while Disney’s stock gained as much as 1.5%. Fubo, which had a market value of around $481 million on Friday, will remain publicly traded.
Overcoming Challenges
As a virtual multichannel video programming distributor, Fubo has faced challenges such as expensive programming and subscriber churn. However, by combining forces with Hulu + Live TV, the new venture is poised to attract subscribers seeking online alternatives to traditional cable TV.
New Sports and Broadcast Service
As part of the deal, Disney will enter into a new carriage agreement with Fubo, enabling the creation of a new sports and broadcast service featuring Disney’s sports and broadcast networks, including ABC and ESPN. This will allow Fubo to offer skinnier sports news and entertainment bundles tailored to consumers’ preferences.
Settling Litigation
The merger has also resolved all litigation between Fubo and Disney/ESPN related to Venu Sports, a sports streaming platform planned by Disney, Fox Corp., and Warner Bros. Discovery Inc. This paves the way for the rollout of Venu Sports, which will provide access to live sports events from major leagues like the NFL and NBA.
Financial Outlook
The combined venture is expected to generate over $6 billion in revenue at closing, with projections reaching $7.5 billion in revenue and $550 million in earnings before interest, taxes, depreciation, and amortization by 2028. As part of the deal, the Venu partners will make a cash payment to Fubo of $220 million, and Disney has committed to providing a $145 million term loan to Fubo in 2026.
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