Disney’s Hulu + Live TV and Fubo will remain separate brands post-merger|Fubo; Anthony Quintano|Facebook; CC BY 2.0
Disney and small-time live sports streamer FuboTV are merging their live television capabilities, according to Bloomberg, to form the country’s second-largest live TV streamer behind YouTube TV.
The deal will give Disney a 70% majority stake; Fubo shareholders will retain 30%.
While Disney will appoint most of the joint venture’s board, Fubo’s leadership, including CEO David Gandler, will run operations.
The deal is expected to close within 12–18 months. It resolves a Fubo lawsuit over the mega Venu Sports app founded by ESPN, Fox and Warner Bros. Discovery (WBD). The cable TV streamer accused the trio of antitrust behavior, but the new venture clears the way for Venu’s future launch.
Once greenlit, Disney, Fox, and WBD will pay $220 million to Fubo as part of the agreement, with Disney extending a $145 million loan through 2026. Fubo will receive a $130 million termination fee if the deal fails.
Fubo has struggled financially and is now expected to become cash flow positive post-merger. On Monday, its stock soared 250% on the announcement.
The merger will challenge YouTube TV, which has 8 million subscribers. Hulu + Live TV’s 4.6 million and Fubo’s 1.6 million subscribers will give the new entity a competitive edge.
Hulu + Live TV and Fubo will remain separate brands post-merger and won’t affect the Hulu streaming service.