Disney will combine Hulu + Live TV with FuboTV
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Disney (DIS) will combine its Hulu+ Live TV business with sports streamer FuboTV (FUBO) in the first major media dealmaking move by 2025.
According to a press release, Disney will control 70% of Fubo. The sports streamer’s shareholders will own the remaining 30% of the combined business, which will operate under the Fubo publicly traded company name.
In conjunction with the transaction, Fubo settled all litigation with Disney, Fox (FOX), and Warner Bros. Discovery (WBD) related to Venu Sports, the trio’s previously announced planned sports streaming platform.
Fubo’s shares rose more than 100% in early trading Monday shortly after the announcement. Shares of Disney, Fox and WBD were up about 1% each.
The combination of the two businesses will create one of the largest digital pay-TV providers as consumers search for cable alternatives amid increasing cord-cutting.
Fubo, which gives users access to live TV channels over the Internet, has focused primarily on sports and news. Hulu + Live TV, which is classified as a cable replacement option – similar to YouTube TV – allows users to stream from nearly 100 live TV channels across sports, news and entertainment.
On an investor call after the announcement, Fubo said the combined company is expected to “be immediately cash flow positive” with more than 6.2 million customers in North America and more than $6 billion in revenue.
The agreement will also provide $220 million of immediate cash to Fubo, as well as $145 million in committed financing available through January 2026 to enhance liquidity and ensure continued investment.
“We are pleased with today’s results,” said Fubo co-founder and CEO David Gandler, who will also run the new business. “The increased scale means we have the flexibility to pursue diverse growth strategies, opening up a range of opportunities domestically and internationally.”
Gandler said that while fubo will continue to focus on sports and news, it will now be able to offer even more consumer options, including access to ESPN+ through revised distribution agreements with both Disney and Fox.
“Importantly, Fubo has the ability to create better sports, news and entertainment bundles tailored to consumer needs,” he said, noting that Hulu + Live TV will remain an entertainment-focused cable replacement service.
Overall, Fubo’s management team said that the deal will create a “very competitive and exciting environment” and that the company is now “preparing” for its growth phase.
Last year, fubo’s antitrust lawsuit against Venu Sports alleged that Disney, Fox and WBD used their “iron grip” on commercially important sports content to extort billions of dollars from distributors and consumers.