Streaming Giants Unite: Disney and Fubo Merge Hulu+ Live TV Services
In a groundbreaking move, Disney is set to combine its Hulu+ Live TV service with Fubo, creating a powerhouse in the internet TV bundle market. The resulting company, with Disney holding a 70% stake, will boast 6.2 million subscribers and offer a robust streaming experience.
A New Era in Streaming
The merger brings together two popular streaming services that mimic traditional cable TV bundles, offering linear TV networks and a wide range of content. While both services will remain available separately to consumers, the combined entity will become a major player in the streaming space, with immediate cash flow positivity.
Fubo Stock Soars
Fubo shareholders will own 30% of the company, and its stock surged as much as 170% in early trading on Monday, following the announcement. The deal is expected to close soon, with Disney committing a $145 million term loan to Fubo in 2026.
Settling Litigation
As part of the deal, Fubo and Disney have settled their litigation regarding Venu, a proposed sports streaming service from Disney, Fox, and Warner Bros. Discovery. Fubo had alleged that the service would be anticompetitive, but the dispute has now been resolved, with Disney, Fox, and Warner Bros. Discovery making a $220 million cash payment to Fubo.
New Leadership and Carriage Agreement
The combined company will be led by Fubo’s management team, including CEO David Gandler, while its new board of directors will be majority appointed by Disney. Additionally, Fubo and Disney have entered into a new carriage agreement, allowing Fubo to create a new sports and broadcasting service featuring Disney’s networks.
A Shift in the Streaming Landscape
This merger marks a significant shift in the streaming landscape, as Disney and Fubo join forces to create a formidable competitor in the market. With its combined resources and expertise, the new entity is poised to offer an unparalleled streaming experience to consumers.
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