Disney (DIS+0.10%) announced on Monday that it will be merging its Hulu + Live TV business with FuboTV (FUBO+239.24%). The deal will allow Disney to continue with its sports streaming joint venture with Fox Corp. (FOX+1.02%) and Warner Bros. Discovery (WBD+3.07%).
Fubo and Hulu + Live TV both provide access to live TV channels over the internet, as opposed to through traditional cable or satellite services. Combined, they will serve 6.2 million North American subscribers. In a press release, Disney said the new merged business is “expected to enhance consumer choice through more flexible programming offerings.”
Disney will own 70% of the new venture, which will operate under the Fubo name and remain publicly traded. Fubo’s current management team will continue to lead the company, while both services will still be offered to consumers as separate options.
Fubo will also launch a new sports service that includes Disney’s sports networks including ABC, ESPN, ESPN2, SEC Network, ACC Network, ESPNEWS, and ESPN+.
Fubo stock skyrocketed over 140% Monday morning following the news.
“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 Fubo CEO David Gandler in a statment. “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.”
This is a different tune from Fubo, which sued Disney, Fox and Warner Bros. Discovery last year over an upcoming joint sports-only streaming service — Venu Sports — that Fubo alleged would be anti-competitive.
Disney said that Fubo has settled all litigation related to Venu.
As part of the deal, Disney, Fox, and Warner Bros. Discovery will collectively make a $220 million cash payment to Fubo at the time of signing. Additionally, Disney has agreed to provide Fubo with a $145 million term loan in 2026.
Venu Sports was planned to launch this past fall with a price tag of $42.99 a month.
Venu subscribers will have access to dozens of sports channels including ESPN, SECN, ACCN, ABC, FOX, FS1, BTN, TNT, and TBS all without the need of a cable subscription. The service will also provide access to extensive live game coverage from all the major sports leagues and on-demand sports content like documentaries from ESPN.
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