In a surprising move announced Monday, Disney revealed plans to merge its Hulu Live TV business with Fubo, the live TV streaming service renowned for its sports coverage.
Under the terms of the agreement, Disney will acquire a 70% stake in Fubo, which will continue to operate as a separate service.
This merger is poised to disrupt the streaming landscape by creating a combined Fubo and Hulu Live TV platform, positioning it to directly compete with YouTube TV, which boasts over 8 million subscribers. The newly formed entity, which will have a total of 6.2 million subscribers, aims to challenge YouTube TV’s dominance in the live TV streaming market.
The deal comes nearly a year after Fubo filed a lawsuit against ESPN, Fox, and Warner Bros. Discovery over a proposed joint streaming venture called Venu Sports. Although a hearing for the lawsuit was scheduled for today, Fubo has now resolved all legal disputes as part of the merger.
Under the agreement, Disney, ESPN, Fox, and Warner Bros. Discovery will collectively pay Fubo $220 million, with Disney also providing a $145 million term loan through 2026. If the merger fails to proceed due to specific conditions, Fubo will be entitled to a termination fee of $130 million.
Following the merger, Hulu Live TV will remain accessible via the Hulu app and will continue to be part of the subscription bundle that includes Hulu, Disney+, and ESPN+. Fubo will retain its own app, where users will access its services. The current management team of Fubo, led by co-founder and CEO David Gandler, will continue to lead operations for the merged companies.
Founded in 2015 as a streaming service focused on soccer matches, Fubo has evolved into a sports streaming powerhouse, offering more than 55,000 sporting events to date. The company went public in 2020 and has continued to expand its reach in the competitive streaming market.
