The Walt Disney Company has entered into a definitive agreement with FuboTV Inc. to combine its Hulu + Live TV business with Fubo, with Disney becoming the majority owner of the resulting company, which will keep Fubo and Hulu + Live TV available to consumers as separate offerings.
What’s Happening:
- FuboTV Inc. and The Walt Disney Company have announced that they have entered into a definitive agreement for Disney to combine its Hulu + Live TV business with Fubo.
- The transaction is still subject to regulatory approvals, Fubo shareholder approval, and the satisfaction of other customary closing conditions.
- Under the agreement’s terms, at closing, Disney will own 70% of Fubo, with Fubo’s existing management team (led by Fubo Co-founder and CEO David Gandler) operating the newly combined Fubo and Hulu + Live TV businesses.
- As part of the deal, Disney will enter into a new carriage agreement with Fubo that will allow Fubo to create a new Sports & Broadcast service, featuring Disney’s premier sports and broadcast networks including ABC, ESPN, ESPN2, ESPNU, SECN, ACCN, ESPNEWS, as well as ESPN+.
- After the closing of the transaction, Fubo and Hulu + Live TV will continue to be available to consumers as separate offerings. Hulu + Live TV will continue to be streamed in the Hulu app and be offered as part of the Disney bundle with Hulu, Disney+ and ESPN+. Fubo, which streams more than 55,000 live sporting events annually, will continue to serve its subscribers in the Fubo app.
- The combined company will negotiate carriage agreements with content providers for both Hulu + Live TV and Fubo services independently from Disney.
- On the corporate side of things, after the transaction closes, Fubo will be governed by a board of directors with the majority appointed by Disney, as well as independent directors.
- Gandler will also serve on the board of directors continuing as Fubo’s CEO. The new deal provides the combined company with the resources and support of Disney, and the existing Fubo management team will continue to focus on driving growth and profitability.
- Together, the combined company is projected to be well-capitalized and cash-flow positive immediately after the closing of the new definitive agreement.
- As another part of the agreement, Fubo has settled all litigation with Disney and ESPN related to Venu Sports – the previously announced sports streaming platform planned by ESPN, FOX and Warner Bros. Discovery.
- Fubo has also settled all litigation with FOX and Warner Bros. Discovery.
- As part of the settlement, at signing of the agreement, Disney, FOX and Warner Bros. Discovery will make an aggregate cash payment to Fubo of $220 million.
- Additionally, Disney has committed to provide a $145 million term loan to Fubo in 2026 as part of this definitive agreement.
What They’re Saying:
- Fubo Co-founder and CEO David Gandler: “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. 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. It’s a win for consumers, our shareholders, and the entire streaming industry.”
- Justin Warbrooke, Executive Vice President and Head of Corporate Development, The Walt Disney Company: “This combination will allow both Hulu + Live TV and Fubo to enhance and expand their virtual MVPD offerings and provide consumers with even more choice and flexibility. We have confidence in the Fubo management team and their ability to grow the business, delivering high-quality offerings that serve subscribers with the content they want and offering great value.”
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