In this article, Disney and Fubo have announced a merger that will combine Disney’s Hulu+ Live TV service with Fubo, bringing together two internet TV bundles. Disney will hold a 70% ownership stake in the resulting publicly traded Fubo company, with Fubo shareholders owning the remaining 30%. The deal is expected to be finalized within 12 to 18 months.
Both Hulu+ Live TV and Fubo offer streaming services similar to traditional cable TV bundles, providing linear TV networks. Together, these services have a total of 6.2 million subscribers. Even after the merger, both services will continue to be available separately to consumers. Hulu+ Live TV can be accessed through the Hulu app or as part of Disney’s bundle that includes Hulu, Disney+, and ESPN+.
The agreement does not include Hulu, a streaming platform known for its original content like “Only Murders in the Building” and “The Handmaid’s Tale,” which competes with services such as Netflix. Fubo’s CEO, David Gandler, highlighted the value of Hulu+ Live TV being integrated into the Hulu ecosystem for user retention.
Fubo, traditionally focused on sports and news content, will benefit from the merger by becoming immediately cash flow positive. The deal has also resolved litigation between Fubo, Disney, Fox, and Warner Bros. Discovery regarding the Venu sports streaming service. As part of the settlement, a cash payment of $220 million will be made to Fubo, with additional commitments from Disney.
The combined company will be led by Fubo’s management team, with a new board of directors primarily appointed by Disney. The merger is seen as a strategic move to enhance the companies’ positions in the competitive streaming market.
