Disney to merge live channels with Fubo
January 6, 2025
Disney is to merge its multichannel streaming service Hulu Live TV with competitor Fubo, the companies have revealed in a surprise announcement.
As a result, Disney will take a controlling 70 per cent stake in the newco but it will continue to be traded publicly under the Fubo name. Fubo management, including co-founder and CEO David Gandler, will run the combined venture, though Disney will appoint a majority of the board.
The deal will create a much bigger player in the virtual multichannel video provider (vMVPD) space, one that can aggressively chase the US market leader YouTube TV. YouTube claimed a year ago that it had eight million subscribers, while Hulu + Live TV had 4.6 million subs and Fubo had 1.6 million, giving a combined 6.2 million subs.
After the deal closes, the company will continue to offer both Hulu + Live TV and Fubo under distinct brands, with Hulu continuing to be available in the larger Disney bundle. Fubo will negotiate carriage deals on behalf of the services, independent from Disney.
The deal will also end Fubo’s legal action against the Venu Sports streaming service, potentially allowing it to proceed. Venu is the ‘skinny’ streaming bundle that includes Disney’s ESPN channels and ABC, Fox and Fox Sports 1, and the sports channels from Warner Bros Discovery. Fubo secured an injunction pending the trial, suspending the service for the entire NFL season.
According to the companies, Disney, Fox and WBD will pay Fubo $220 million (€212.3m), with Disney also providing a $145 million term loan through 2026. Fubo would also receive a $130 million termination fee if the deal fails to close under certain circumstances.
The deal does not include the core Hulu SVoD service and is focused only on the vMVPD offering.