In a strategic move to strengthen its position in the streaming market, Disney (DIS, Financial) has announced the merger of its Hulu + Live TV service with FuboTV (FUBO, Financial). This collaboration will establish the combined entity as the second-largest internet pay-TV provider in North America, boasting approximately 6.2 million subscribers and generating around $6 billion in revenue.
Under the terms of the agreement, Disney will hold a 70% majority stake in the new venture, while Fubo's co-founder and CEO, David Gandler, will lead the combined operations. Both Hulu + Live TV and FuboTV will continue to operate as separate services, maintaining their individual apps and content offerings to provide consumers with more choice and flexibility.
This merger also resolves a legal dispute between Fubo and Disney over the sports streaming venture Venu Sports. As part of the settlement, Disney, Fox, and Warner Bros. Discovery will pay Fubo $220 million, and Disney will provide a $145 million term loan to Fubo in 2026. Additionally, the companies plan to create a new sports service featuring Disney's sports and broadcast networks.
The announcement has had a significant impact on the stock market, with Fubo's shares soaring by over 180% following the news. Disney's stock also experienced a modest increase of approximately 1.1%.
This merger is expected to enhance the financial stability of the combined entity, positioning it for positive cash flow and providing a more robust offering in the competitive streaming landscape. Consumers can anticipate improved services and a broader range of content as a result of this strategic partnership.
