US media giant Disney and sports-focused streaming service Fubo have agreed a deal to merge their live TV services, paving the way for the launch of the Venu Sports OTT platform.
The agreement, which merges two internet TV bundles, will see Disney combine its Hulu + Live TV business with Fubo and become majority owner of the resulting company.
Go deeper with GlobalData
Under the terms of the deal, Disney will own approximately 70% of Fubo, while Fubo shareholders will own the remaining 30%.
Fubo’s existing management team, led by co-founder and chief executive David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses which will operate under the Fubo publicly traded company name.
Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings.
Gandler said: “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.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“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.”
Justin Warbrooke, executive vice president and head of corporate development for the Walt Disney Company, added: “This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD (multichannel video programming distributor) offerings and provide consumers with even more choice and flexibility.
“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.”
Significantly, in conjunction with the transaction, Fubo has settled all litigation with Disney and ESPN related to Venu Sports, the joint venture sports streaming platform planned by ESPN, Fox, and Warner Bros. Discovery (WBD). Fubo has also settled all litigation with Fox and WBD.
As part of the deal, Disney, Fox, and WBD will make an aggregate cash payment to Fubo of $220 million. Disney has also committed to provide a $145 million term loan to Fubo in 2026.
Additionally, a termination fee of $130 million will be payable to Fubo under certain circumstances, including if the transaction fails to close due to the failure to obtain requisite regulatory approvals on the terms and conditions set forth in the definitive agreement.
Fubo filed a lawsuit against Disney, Fox and WBD in February 2024, seeking the blocking of Venu Sports, restrictions on the trio such as economic parity of licensing terms, and “substantial monetary damages”.
The launch of Venu Sports was ultimately delayed after FuboTV was granted a preliminary injunction by Judge Margaret Garnett of the New York Southern District Court last August. The platform was originally slated for launch in late 2024.
Garnett upheld Fubo’s claims that the joint venture, which would house over 50% of all US sports rights on one service, would lessen competition, limit consumer choice, enable price gouging, and impinge on the ability of Venu’s rivals to do business competitively.
The combination of Fubo and Hulu + Live TV, which together have over 6.2 million subscribers in North America, will allow customers to stream live broadcast and cable networks on their connected TVs, mobile phones, tablets, and other internet-connected devices.
Through the deal, Disney will enter into a new carriage agreement with Fubo that will allow it to create a new sports and broadcast service, featuring Disney’s premier sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
Hulu + Live TV will continue to be streamed in the Hulu app and be offered as part of the bundle with Hulu, Disney+ and ESPN+.
The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney.
Following the closing of the transaction, Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors.
Gandler will also serve on the board of directors continuing as Fubo’s CEO.
