Disney Merges Hulu + Live and FuboTV, Creating Streaming Giant
Disney merges Hulu + Live TV with FuboTV, creating a $6 billion streaming giant. Learn how this deal reshapes the pay-TV landscape with distinct offerings.
Deepanjali
In a game-changing move, Disney announced the merger of Hulu + Live TV with sports streaming platform FuboTV, creating the second-largest online pay-TV platform in North America after YouTube TV. The newly merged venture will generate approximately $6 billion in revenue and serve 6.2 million subscribers, offering internet-based channel packages as a compelling alternative to traditional cable or satellite TV subscriptions.
Disney will hold a 70% controlling stake, with the venture being led by Fubo CEO and co-founder David Gandler. Notably, this agreement excludes Hulu’s core video-streaming service. As part of the deal, Disney has provided Fubo with a $145 million term loan, due in 2026, to support its growth and stability.
Following the announcement, Fubo’s stock price skyrocketed by 260% to $5.18, boosting the company’s market value to $480 million, while Disney’s shares saw a modest increase.
The merger also resolves FuboTV’s ongoing legal battle with Venu Sports, a streaming platform developed by ESPN, Fox, and Warner Bros. Discovery. As part of the settlement, Fubo will receive a $220 million cash payment and has requested the U.S. District Court in Manhattan to dismiss its lawsuit. Filed last February, the lawsuit accused Venu of anti-competitive practices, specifically “bundling”, which Fubo argued limited competition among sports streaming services.
David Gandler, CEO of Fubo, emphasized the merger’s benefits, saying, “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.”
Under the deal, Disney will license its sports and broadcast networks, including ABC, ESPN, and ESPN+, to FuboTV. Despite the merger, both services will remain separate, with Fubo focusing on sports and news, while Hulu + Live TV continues as an entertainment-driven cable alternative. Hulu + Live TV will remain part of Disney’s broader streaming bundle alongside Disney+ and ESPN+.
This strategic partnership positions the merged venture as a formidable player in the competitive streaming industry, promising to deliver greater flexibility, enhanced content offerings, and positive growth for shareholders and consumers alike.
