The merger comes a year after Fubo filed an antitrust lawsuit against Disney, Warners Bros and Fox.
Disney has agreed to pay Fubo – the sports-first live TV streaming platform – $220m to combine with Hulu + Live TV, forming a joint venture and settling the antitrust lawsuit Fubo filed against the corporation last year.
As part of the deal which was announced yesterday (6 January), Disney will become a majority owner in the resulting company, owning approximately 70pc of Fubo.
However, the combined businesses, which together boast more than 6.2m subscribers in North America, will be operated by Fubo’s existing management team while the two streaming platforms will still be available to consumers separately.
Moreover, according to the deal, Disney will also allow Fubo to create a new sports and broadcast service which will include Disney’s sports broadcast networks including ABC, ESPN, SECN, ESPN News and ESPN+.
“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 David Gandler, Fubo’s co-founder and CEO.
“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,” Gandler added.
As part of the transaction, Disney will provide Fubo with a $145m term loan in 2026 while also agreeing to pay the company $130m in case the transaction fails to close.
The business merger announcement comes a year after Fubo filed an antitrust lawsuit against Disney, Warner Bros Discovery and Fox corporation, alleging that the companies have engaged in a “years-long campaign to block Fubo’s innovative sports-first streaming business resulting in significant harm to both Fubo and consumers.” The lawsuit further claimed that their upcoming planned joint venture Venu Sports “steals Fubo’s playbook”.
In August last year, Fubo won the preliminary injunction against the three companies, successfully stopping the launch of Venu Sports, which, according to the company would have controlled roughly 60 to 80pc of live broadcast sports content.
Earlier last year, Disney, in a bid to maximise streaming profits, expanded its password-sharing crackdown to several countries globally, whilst also introducing an ‘extra member’ fee.
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