Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company in a deal that creates a major streaming player and settles all litigation between Fubo, Disney, Fox and Warner Bros. Discovery over the Venu Sports streaming joint venture, a case that was set for a hearing […]Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company in a deal that creates a major streaming player and settles all litigation between Fubo, Disney, Fox and Warner Bros. Discovery over the Venu Sports streaming joint venture, a case that was set for a hearing
Disney will combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company in a deal that creates a major streaming player and settles all litigation between Fubo, Disney, Fox and Warner Bros. Discovery over the Venu Sports streaming joint venture, a case that was set for a hearing in New York today.
As the television landscape continues to evolve, the combined business of former adversaries will operate under Fubo’s publicly traded company (stock symbol FUBO) and be led by the existing Fubo management team. The deal offers an expanded Fubo resources from deep-pocketed Disney starting with an immediate $220 million cash injection at close, and a $145 million term loan available in January of 2026.
Venu, announced with great fanfare last February, got a name and logo in May under CEO Pete Distad. The service aggregating the linear feeds from 14 sports-centric networks and streaming services of its three partners was priced at $42.99. But a planned fall launch was stalled by an antitrust lawsuit filed by Fubo. Venu partners tried and failed to get the case dismissed and a trial was set for October of 2025 in U.S. District Court in Manhattan.
No more. In an SEC filing this morning, Fubo said, “the Settling Parties agreed to settle all claims asserted in the Action, including … claims concerning the defendants’ bundling or tying of television channels, defendants’ use of most-favored nations clauses, and the contemplated and previously announced Venu joint venture, and to dismiss all claims in the Action with prejudice.”
With a combined 6.2 million North American subscribers between Fubo and Hulu + Live TV, the new vMVPD company is expected to enhance consumer choice through more flexible programming offerings, Disney and Fubo said in a joint release. Both services will continue to be available to consumers as separate offerings. Hulu + live TV will remain an entertainment focused cable replacement service, while Fubo will continue to be focused on sports and news, Gandler said, and the merger has the potential to create increasingly popular skinnier bundles in sports, news and entertainment bundles according to consumer needs.
The deal in fact amends Fubo’s carriage agreements with Disney and Fox and will create a new Sports & Broadcasting offering to include their networks including, on the Disney side, ESPN+, ABC, ESPN, ESPN2, ESPNU, SECN, ACCN and ESPNEWS.
The transaction is subject to closing conditions including approval from regulators and Fubo shareholders. Fubo gets a $130 million breakup fee if it implodes, executives said on a call this morning after the news. Sounding elated, they touted the new opportunities and fresh liquidity Disney will bring hinting at international expansion and potential deals, anticipating scale in advertising and marketing efficiencies.
“I think one of the most valuable pieces of this is that Hulu live TV is embedded within the Hulu product, which has significant advantages, particularly around retention,” said CFO John Janedis.
“We are preparing ourselves for our growth stage,” he said.
The expanded Fubo is expected to become cash flow positive instantly with $6 billion in revenue.
At closing, Disney will own 70% of Fubo and Fubo shareholders will own the rest. Fubo’s existing management team, led by Gandler, will operate the newly combined businesses.
“We are thrilled to collaborate with Disney to create a consumer-first streaming company that combines the strengths of the Fubo and Hulu + Live TV brands,” Gandler said. “This combination enables us to deliver on our promise to provide consumers with greater choice and flexibility. Additionally, this agreement allows us to scale effectively, strengthens Fubo’s balance sheet and positions us for positive cash flow. It’s a win for consumers, our shareholders, and the entire streaming industry.”
It was definitely a win for Fubo’s stock price, which surged more than 200% before the market open to about $4.40. Shares of Disney, Fox and WBD are up a hair.
“This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility,” said Justin Warbrooke, Disney EVP and head of Corporate Development. “We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
The new Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors. Gandler will serve on the board.
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