Agreement paves way for planned Warner Bros Discovery, Fox and Disney sports streamer Venu
Disney is to merge its Hulu+ Live TV unit with sports streamer FuboTV, creating what is expected to be the second-biggest internet-based pay-TV outfit in the US after YouTube TV.
The combined company will be led by Fubo chief executive David Gandler and will be 70% owned by Disney and 30% owned by Fubo. The new entity will retain the Fubo name and existing management team.
The deal, which does not include the main Hulu service, will create a company with revenues of $6bn (£4.8bn) and more than six million subscribers across North America.
It will also see Fubo dropping its antitrust lawsuit against Venu, the sport streamer that Disney, Warner Bros Discovery and Fox had been planning to launch.
As part of the arrangement, the trio will pay $220m (£176m) to Fubo, while Disney will provide an additional $145m (£116m) loan in 2026. A $130m (£104m) termination fee is also payable to Fubo if the deal fails to close.
Fubo, which saw its shares surge more than 180% in early morning trading, will also be able to offer a sports-focused service carrying Disney’s networks including ABC, ESPN, ESPN2 and ESPN+. The deal remains subject to regulatory approval.
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.”
Justin Warbrooke, executive vice-president and head of corporate development at Disney, added: “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.”
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