Disney is merging its Hulu + Live TV business with Fubo, forming a combined virtual Multichannel Video Programming Distributor (MVPD) company. Under the terms of the definitive agreement, Disney will own 70% of the combined business, which will operate under the Fubo publicly traded company name (NYSE: FUBO).
The new entity will be led by the existing Fubo management team.
. Fubo’s existing management team, led by Fubo Co-founder and CEO David Gandler, will operate the newly combined Fubo and Hulu + Live TV businesses.
The deal would combine Hulu + Live and the sports-heavy FuboTV and would clear the way for the launch of Venu Sports, a streaming venture from Disney’s ESPN, Warner Bros. Discovery and Fox.
Venu Sports was originally supposed to launch this fall but was delayed by an antitrust lawsuit brought by Fubo.
“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,” said Gandler. “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.”
Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings. With a combined 6.2 million North American subscribers between Fubo and Hulu + Live TV, the new MVPD company is expected to enhance consumer choice through more flexible programming offerings, Disney said in a statement.
The new entity will also create a new sports and broadcasting service featuring Disney’s premier sports and broadcast networks, including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, and ESPN+.
“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, Executive Vice President and Head of Corporate Development, The Walt Disney Company.
“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,” Warbrooke added.
Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings post-closing. Hulu + Live TV will continue to be streamed in the Hulu app and offered as part of a bundle with Hulu, Disney+ and more than 55,000 live sporting events annually, will continue to serve its subscribers in the Fubo app.
The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney.
As part of the deal, Fubo will drop its antitrust lawsuit against Venu Sports, the streaming joint venture between Disney, Fox Corp, and Warner Bros. Discovery (WBD). Disney, Fox and WBD will pay Fubo $220 million, and Disney will provide a $145 million loan to Fubo through 2026, according to reports.
The Venu Sports service — $42.99 per month — would offer cord-cutters access to numerous sporting events from various media companies’ portfolios, including the NFL, NBA, MLB, NHL, tennis, soccer, golf, NASCAR races and UFC matches.