Disney has struck an agreement with live TV streaming service Fubo, merging Hulu + Live TV with Fubo’s operations in a shared venture. As part of this deal, Fubo will withdraw its antitrust lawsuit aimed at obstructing Venue, the sports-centric streaming package from Disney, Fox Corporation, and Warner Bros. Discovery.
As a film enthusiast, I’ve got some news to share about the streaming world: Despite the Fubo deal, Hulu’s subscription video-on-demand service will continue as a standalone entity. This means that Fubo and Hulu + Live TV will still be two separate entities. Combined, they’ll have approximately 6.2 million subscribers in North America, making them the second largest streaming service behind YouTube TV, which boasts nearly 8 million customers.
Disney will have a 70% stake in the partnership focused on pay-TV, while Fubo will control the remaining 30%. The brands for Hulu + Live TV and Fubo will continue to be promoted and sold individually. The companies explained that the joint venture will handle negotiations with content providers for both Hulu + Live TV and Fubo services on its own, separate from Disney.
In addition to this arrangement, Fubo will establish a fresh “sports and broadcasting service,” showcasing Disney’s sports and broadcast channels. Disney is negotiating a new broadcasting agreement with Fubo for the premium tier that will incorporate networks like ABC, ESPN, ESPN2, ESPNU, SEC Network, ACC Network, and ESPNews along with ESPN+.
As part of the agreement, Fubo will receive a cash payment of $220 million from Disney, Fox, and Warner Bros. Discovery. Additionally, Disney has agreed to offer a term loan of $145 million to Fubo in 2026 as part of this transaction. Furthermore, if specific conditions arise, such as the deal not being able to close due to regulatory approval issues, Fubo will be entitled to a breakup fee of $130 million.
Justin Warbrooke, Disney’s executive VP and head of corporate development, stated that by joining forces with Hulu + Live TV and Fubo, both platforms will broaden and upgrade their television distribution services. This union aims to offer consumers a wider variety of options and flexibility. We believe in the capabilities of Fubo’s management team to expand the business, providing top-notch content that caters to viewers’ preferences while offering competitive pricing.
Under the new arrangement, the current Fubo leadership team, headed by co-founder and CEO David Gandler, will run the merged Fubo and Hulu + Live TV partnership. This joint venture between Fubo and Hulu + Live TV will have a board of directors, with Disney appointing the majority. Additionally, Gandler will be part of this board. The deal is said to grant the combined entity the advantages and backing of Disney, as stated in the official announcement from both companies.
As a follower, I’m thrilled about the merger of Fubo and Hulu + Live TV. This alliance empowers us to keep our commitment of offering more options and flexibility to consumers. Furthermore, it enables us to expand efficiently, improves Fubo’s financial stability, and sets us on a path towards positive cash flow. In essence, it’s a victory for consumers, shareholders, and the entire streaming industry alike.
Disney and Fubo did not say when they expect the deal to close.
In February 2024, Fubo initiated a federal antitrust lawsuit against Disney, Fox, Warner Bros. Discovery, and ESPN (which is owned by Disney) as well as Hulu. The lawsuit aimed to prevent the launch of Venu, alleging that these companies had been working together for years to hinder Fubo’s unique sports-centric streaming service, causing substantial damage to both Fubo and consumers. Previously, in the summer of 2023, a preliminary injunction was granted to Fubo, halting the launch of Venu by these three companies.
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2025-01-06 17:17